WHAT ARE THE WARNING SIGNS OF A PRIVATE CLUB IN TROUBLE?
WHAT ARE WARNING OF A CLUB IN TROUBLE?
52 | EXECUTIVE COMMITTEE
ARE YOU CAPABLE OF TRANSFORMATION?
52 | EXECUTIVE COMMITTEE ARE YOU CAPABLE OF TRANSFORMATION?
82 | CLUB FACTS AND FIGURES
82 | CLUB FACTS AND FIGURES
TAX STATUS: THE GRASS IS NOT ALWAYS GREENER
TAX STATUS: THE GRASS IS NOT ALWAYS GREENER
100 - 104 | INNOVATIVE IDEAS
100 - 104 INNOVATIVE IDEAS
CMAA ALOHA STATE CHAPTER
CMAA ALOHA STATE CHAPTER
COUNTRY CLUB OF VIRGINA
COUNTRY CLUB OF VIRGINA
SPECIAL INSERT
SPECIAL INSERT
GAUGING THE IMPACT OF PRIVATE CLUB TRENDS
GAUGING THE IMPACT OF PRIVATE CLUB TRENDS
Michael Scimo Medinah Country Club
YOU HAVE A PUSH NOTIFICATION
Push notifications connect you with your members and help promote club events where they can connect with each other.
BOARDROOM MAGAZINE
Boardroom Magazine has named Jonas Club
Software the 2018 Mobile App Company of the Year & Business Intelligence Company of the Year.
EDITOR’S NOTE
DAVE WHITE
Dave White is the editor of BoardRoom magazine. If you have comments on this article or suggestions for other topics, please send Dave an email to: dave@boardroommag.com.
Congratulations to Our Top Presidents
A tip of the hat to President Michael Scimo being honored in this issue as BoardRoom’s Distinguished President for 2018.
Scimo, president of Medinah Country Club in Medinah, IL, is featured in our BoardRoom cover story this issue.
This marks the 11th year BoardRoom is recognizing club presidents for their outstanding leadership and who have so wonderfully combined their efforts for the betterment of their club.
Volunteer boards of directors and club presidents must set the tone and tenor for what happens at their private club and it’s this vision and mission that BoardRoom recognizes with the top club president awards.
It’s the club boards and presidents who must have the vision and set policy for general managers, and it’s the general managers who must make that policy (along with their own vision) work on a daily basis. Micromanagement be gone!
Our congratulations to our Distinguished President Scimo and the other 25 (a record number this year) Club Presidents of the Year.
Read on, and then submit your president’s name later this year as BoardRoom’s top private club presidents for 2019
n n n
BoardRoom’s magazine’s Lifetime Achievement Award recipient for 2018 is Linda Pesner, president of EA Photography of Anaheim, CA.
Pesner is being recognized for outstanding service to the private club industry. The Lifetime Achievement Award is presented annually based on the criteria of: how each candidate has helped the private club industry; how they have impacted the industry, what they should be remembered for and who have served with distinction, honor and integrity.
Paul Levy is another individual award recipient for 2018. Levy, who receives BoardRoom’s Award of Dedication is the immediate past president of the PGA of America. He’s spent a lifetime involved in the golf and club industries.
And there are two recipients for BoardRoom’s Educator of the Year Award Whitney Reid Pennell and Mitchell Stump Reid Pennell, president of the RCS Hospitality Group, is well known and highly regarded for her educational efforts. Her company this year is also being recognized with three BoardRoom Awards, including the Club Service Firm of the Year, Consulting Firm of the Year (tied with Denehy Club Thinking Partners) and Staff Training Company of the Year for the second consecutive year.
Mitchell Stump, CPA, PA, a leader in his profession, has made his mark in the private club industry as an author, speaker and tax consultant to hundreds of clubs throughout the country. He’s authored the Club Tax Book, Club Sales & Use Tax Book. The Club Equity Conversion/Turnover Book is planned for publication in the near future.
n n n
It’s our 23rd year of publication, and our sincere appreciation to the many vendors and contributors who have helped make BoardRoom the number one publication of the private club industry over the years.
This issue is no less … jam-packed with philosophies, opinions, ideas and innovations all aimed at giving club boards and general managers more ammunition in their recruiting forays and the challenges of giving their club members a great member experience.
BoardRoom will fly its colors at the CMAA World Conference in Nashville offering an opportunity for general managers, board members and visitors to learn more about BoardRoom magazine, the BoardRoom Institute and the BoardRoom’s Distinguished Club program.
BoardRoom Institute, with its online education program, is the resource of choice for private club boards, their directors, committees, committee chairs and others associated with private club governance.
And it’s our goal to help private clubs operate efficiently by optimizing the relationship between your club’s volunteers and paid management through collaborative governance.
John Fornaro, CEO and Publisher of BoardRoom and Gordon Welch, president of the Association of Private Club Directors will be on hand to enlighten guests about BoardRoom Institute and why your club’s board should participate.
For fine private clubs who operate at the highest standards, BoardRoom magazine’s Distinguished Club program is a club specific rating system that provides national recognition for the club, management and its staff.
Representatives from BoardRoom’s Distinguished Clubs will also be in Nashville to provide you with details of how your club can benefit from BoardRoom’s Distinguished Clubs program. Look us up…and enjoy the show! BR
By the way, in our last issue we referred to Mark Sabine of the Mission Viejo Country Club as one of our top presidents for 2018. The gremlins got us. President Sabine was one of BoardRoom’s top presidents for 2017.
Inspire and Support Excellence In Board Governance Through Collaborative Governance
Schwartz
Dave Elder
John R. Embree
Steve Green
Steve Graves
Rob Harris
Larry Hirsh
Lee Hoke
Lynne LaFond DeLuca
David Mackesey
Dave Moyer
MacDonald Niven
Strategic Partners and Allied Associations
Mike Phelps
Whitney Reid Pennell
Charles Ross
Toni Shibayama
Robyn Stowell
Frank Vain
Gordon Welch
Noel Wixom
Frank Wolfe
Aaron D. Wood
BoardRoom
Your board is critical to organizational
APCD believes that effective board leadership and governance requires an ongoing commitment to board development and to a healthy board/staff relationship. We work to effect positive change with club boards and their committees. APCD helps your club:
• Reduce micromanagement
• Minimize board member liability
• Nurture tax-exempt status
• Create a shared playbook
• Focuse on collaborative governance
• Do you believe effective club governance is critical?
• Are you looking to reduce micromanagement in your boardroom?
• Are you concerned about your club’s legal exposure?
• Are you concerned a board members may violate privacy issues?
Contact APCD today!
We can strengthen and support your board! Gordon Welch: (918) 914-9050
PUBLISHER’S PERSPECTIVE | 10
WHAT ARE THE WARNING SIGNS OF A PRIVATE CLUB IN TROUBLE?
BY JOHN G. FORNARO
Warning signs of a club in trouble arise from many different aspects of a private club operation at a time when the industry is on the cusp of change …the Boomer population is moving on at a time when many potential club members are in the 40s, and as another attractive age group – Millennials – are or should be considering a private club membership.
MEMBERSHIP MUSINGS | 16
ARE YOU BETTER THAN A GOLDFISH?
BONNIE J. KNUTSON
According to a study conducted by the tech company, people generally lose concentration after eight seconds, while the notoriously illfocused goldfish loses it after nine seconds. To top it off, the researchers also found that the average attention span for us humans has dropped about four seconds since the mobile revolution began (about the year 2000). That is a 33 percent decrease. Yikes!
CLUB FACTS & FIGURES | 82
TAX STATUS
THE GRASS IS NOT ALWAYS GREENER
BY KEVIN F. REILLY & ED YODER
While the economy has improved, many clubs still struggle to bring in new members and to get existing members to spend what they did in the past. Because there are still too many clubs, many, other than the very exclusive, are just looking to survive. So many opportunities exist for our entertainment dollars that a club has to fight just to maintain its fair share.
PLIGHTS AND INSIGHTS | 12
MAKING MEALS MEMORABLE
NANCY M. LEVENBURG
Recently, my significant other and I decided to go out for dinner to celebrate my birthday and we chose to go to The Chop House in Grand Rapids, MI for two reasons. First, I’d never been there before, and secondly, one of my husband’s golfing buddies gave it a hearty endorsement as a birthday dinner destination and said we should be sure to find out about the birthday dinner deal.
BOARDROOM BASICS & BEYOND | 18
TIME TO THINK ABOUT PROVIDING NUTRITIONAL INFORMATION?
BILL SCHWARTZ
For most of the past 38 years that I’ve been working with food service companies to control their food and beverage costs, mere handfuls of clients have requested nutritional information for their menu items. In the past three to four years however, things have drastically changed. Now, one out of every three clients we work with is asking for it.
WINNING STRATEGIES | 60
THE ROAD TO SUCCESS RUNS THROUGH A TOWN CALLED SELF-AWARENESS
THOMAS
B. WALLACE III
I’m always perplexed when a leader is removed from their position and they say they had no idea it was coming. I believe that it is almost never a surprise. Instead, it may be a clear indication that their intuition was ignored, and warning signs weren’t acknowledged. Why and how? Because of a lack of self-awareness.
GLOBAL PERSPECTIVES | 88
CHANGE SHOWS NO SIGN OF SLOWING
HENRY
DELOZIER
The songwriter, poet and social observer Bob Dylan warned us about change. Back in 1964, he said it was a-coming. Fortyfive years later, we are reminded of his prescience. In private clubs, change has arrived in full force and shows no signs of slowing. As a new year reveals itself, private club leaders should be alert to change in five key areas affecting their operations.
WHAT
JERRY
IS YOUR LEADERSHIP QUOTIENT?
MCCOY
Have you examined your leadership quotient (LQ) recently? The LQ is how other people feel about your leadership skills. That means both those people under your supervision and those that may supervise you. Quick, anonymous surveys will sometimes open your eyes as to how others see you.
TRIBAL MAGIC | 94
CREATING NOWNESS NOW
GREGG PATTERSON
Manager Sue is at The Wanna Be Country Club, sitting across from Manager Joe, her No Nowness Now report in hand. Manager Sue knows when hospitality staffers are in the now, when they see, focus on and are engaged with the place they’re at, the people they’re with, the stuff they’re doing and the moment they’re experiencing. And Sue knows that job one for staffers is to enter into and align themselves with the Now of the people they’re serving. And she’s pondering Nowness now.
Chris Boettcher
PUBLISHER’S PERSPECTIVE
JOHN G. FORNARO
John G. Fornaro is the publisher/CEO of BoardRoom magazine, co-founder/CEO of Distinguished Clubs and the CEO of the Association of Private Club Directors (APCD). If you have comments on this article or suggestions for other topics, please contact John Fornaro at (949) 376-8889 or via email: johnf@apcd.com
What Are the Warning Signs of a Private Club in Trouble?
Much has been made of the common problems – underperforming boards, weak management, poor retention of members, lack of recruitment of new members, uninspiring member experience – which face many private clubs today.
Warning signs of a club in trouble arise from many different aspects of a private club operation at a time when the industry is on the cusp of change …the Boomer population is moving on at a time when many potential club members are in the 40s ( and ripe for action as committee and board members), and as another attractive age group – Millennials – are or should be considering a private club membership.
So how do private clubs attract these potential members after the private club industry struggled through a major recession that started about 10 years ago. Club managements have faced declining memberships, reduced revenues and rising costs, and undoubtedly micromanagement.
belong, there’s a lack of efficient management and often there’s been a lousy member experience.
How does a club get back on track, making it attractive for potential members of the 21st Century?
“First and foremost, the attrition rates of a club are critical. Sales are important but “member retention” is the key to success,” emphasized Paul Levy, past president of the PGA of America.
“I think clubs, for the most part, have all brought on sales people in the form of membership directors in the last 20-25 years, and often that person is the one the club expects to retain the member. I believe that SALES and RETENTION are two totally separate functions and should be staffed accordingly.
“The reality is that all department heads and staff are in the “Member Retention” business,” maintained Levy.
“I would focus monthly on dues as a percentage of operating revenue. The higher the percentage the stronger
We have visited hundreds of clubs over the past few years and what was startling is the fact that many of the top clubs don’t have a waiting list to join. Actually, many have 20 to 40 memberships for sale. Some clubs even have treasury memberships…memberships that members have walked away from because they gave up waiting for their membership to be sold. So, they stopped paying dues and walked away. What’s also startling to me is the fact we are in the best economy in 50 years…no recession for 10 years, very little inflation and a stock market that is up over 200 percent since 2008. What’s going on?
So, what are the warning signs of a club in trouble, and what are the solutions to get more clubs back on a firm grounding and poised to push forward in the future to attract potential members who often today seem more reluctant to join a private club.
The industry’s problems have been well documented… clubs in financial difficulty, an industry that overbuilt has been experiencing more clubs closing as they go into a death spiral; younger people are not attracted to private club (as their parents once were); people can’t afford to
and more stable the revenue stream. Dues are KING…… or as Robert Dedman, founder of ClubCorp believed, the three most important things at a private club are – DUES, DUES, DUES.
“Clubs that don’t generate enough dues must cut back on expenses to balance the budget. This can be dangerous because you risk putting out an inferior product and starting a downward spiral that some clubs have been getting caught in. Dues are 100 percent income, unlike golf, F&B,
PLIGHTS AND INSIGHTS
NANCY M. LEVENBURG
Nancy Levenburg, Ph.D., is a professor in the Seidman College of Business at Grand Valley State University in Grand Rapids, Michigan. She is the president of Edgewater Consulting, and is a member of Spring Lake Country Club in Spring Lake, Michigan. For more information, contact her at: levenbun@gvsu.edu or (616) 331-7475.
Making Meals Memorable
“One is not born into the world to do everything, but to do something.”
- Henry David Thoreau
Recently, my significant other and I decided to go out for dinner to celebrate my birthday. (Alas… another year older!) We chose to go to The Chop House in Grand Rapids, MI, a restaurant that’s about 30 miles away and is renowned for its USDA Prime beef, extraordinary service and extensive premium wine selection.
We chose The Chop House for two reasons. First, while I’d never been there before, it had been a couple of years since my significant other had last dined there. Secondly, one of his golfing buddies gave it a hearty endorsement as a birthday dinner destination and said we should be sure to find out about the birthday dinner deal.
So, it turns out that The Chop House offers a discount if you actually dine there on your birthday (and have your driver’s license to prove it). The restaurant’s Birthday Meal Deal states, “Birthday Meal Deal is a discount based on the number of guests in your party. For example, 1-2 people dining receive a 50 percent discount, 3 people dining 33 percent discount, 4 people dining 25 percent discount, and so on.” So, we chose to go on a Friday night, since Friday was my birthday.
Curious about the menu, I looked it up online and the first words I saw were, “Prepare to be Pampered.” How enticing… exactly how I might envision a celebratory birthday dinner! So we made a reservation, fueled up the gas tank and hit the road.
My birthday dinner turned out to be spectacular… absolutely perfect!
It began with our pre-dinner drink, a Chop House Old Fashioned, made using a brown sugar simple syrup, orange bitters and hand-selected Woodford Reserves Kentucky bourbon. A glass of cabernet sauvignon accompanied our dinner (filet mignon and pan-seared scallops with grilled asparagus), with the strains of soft jazz playing in the background.
The service was impeccable. And topping things off was my birthday dessert – a Crème Brûlée – served on a rect-
angular plate with the words “Happy Birthday” beautifully scrolled in chocolate. Wow! What a memorable meal!
So, the next day it got me thinking. How many dining experiences had I had recently that I could say the same about? For example, “that was absolutely the best XYZ I’ve tasted in years!”
And wouldn’t it be good if that “absolutely the best” XYZ was on the menu in the country club’s dining room? If that XYZ, in fact, provided members with the raison d’être for being willing to climb into their cars on a Friday night and drive for 30 miles? Isn’t that what loyalty is all about?
And it shouldn’t be that hard, should it? One fabulous menu item? Just doing one thing right? As John Maxwell claims, “Forget being well-rounded – doing one thing exceptionally well is the key to success.” (Maxwell is author of the New York Times’ best-seller, Intentional Living: Choosing a Life that Matters.) Or as quality guru Philip Crosby put it, “Do it right the first time.”
Crosby also developed the concept of zero defects. What that means is that the costs of poor quality are much higher than the costs of good quality. So in the long run, organizations should view quality efforts as a way to reduce costs, because the improvements resulting from quality efforts will more than pay for themselves. Doing it right the second time isn’t good enough.
So, you’re looking at your club restaurant’s menu. What’s the one item that you do really well? It’s likely a most-ordered item that is rarely, if ever, sent back to the kitchen. In fact, it might even draw people to the club!
Maybe (like at The Chop House) it’s the Old Fashioned or the filet mignon. Or at Spring Lake Country Club (my local hang-out), it’s the Pretzel Club sandwich at lunchtime (roasted turkey, black forest ham, smoked bacon, cheddar cheese, lettuce, tomato, and garlic aioli on a pretzel roll).
Whatever it is that makes your meals memorable, do it. And do it right the first time! BR
FOOD FOR THOUGHT
BILL SCHWARTZ
Bill Schwartz is the founder and CEO of System Concepts, Inc. (SCI). Based in Scottsdale Arizona, SCI is a food and beverage procurement and inventory management consulting firm and the developer of the FOOD-TRAK System, which is widely used in club operations around the country. Bill can be reached at (480) 951-8011 or bills@foodtrak.com.
Time to Think About Providing Nutritional Information?
Times have changed!
For most of the past 38 years that I’ve been working with food service companies to control their food and beverage costs, mere handfuls of clients have requested nutritional information for their menu items. In the past three to four years however, things have drastically changed.
Now, one out of every three clients we work with is asking for it. Our nutrition module once used only by schools, hospitals and markets is now being requested across all spectrums of the industry.
This is due in part to a focus by consumers on healthier diets, but also has become the focus of the government – specifically the Food and Drug Administration (FDA). The agency has taken an interest in legislating who needs to provide this information, and specifically what information they must provide.
The FDA has recently created rules for chain restaurants and other food service organizations providing food to the public. Depending on their size, they may be required to provide nutrition data for every item on the menu. So far, this rule does not apply to clubs, but consumers are starting to request this information from everyone.
Many of our club clients have started providing nutritional information to their members upon request and we have clients in many other segments of the food service industry that are doing the same, even though they may not currently be required to do so.
The FDA rules require that either an analysis is done by an accredited laboratory, or by using software that works with the United States Department of Agriculture’s (USDA) published nutrition databases. The USDA maintains two databases for nutritional information.
The standard reference database contains 7,793 raw ingredients and is useful for things like produce, meats, seafood and other generic raw materials. The other database – called the branded database – is a collection of manufactured items like pre-made sauces and other items that are made up of numerous ingredients proprietary to the manufacturer. This database contains 239,533 items. These databases are constantly expanding, and the numbers presented here are as of September of 2018.
Some of the more powerful F&B management systems offer a nutrition module, which allows users to cross-reference nutritional information to each food item they purchase. The nutrients are brought into the client database and associated with each raw ingredient. When recipes are constructed, the
nutrients of each recipe ingredient are added together to form a total or composite amount of each nutrient. In addition to specific nutrients, calories, fat carbohydrates and protein values are calculated along with percentage of daily requirement values.
Rules for nutrition labels are very specific, and all labels must conform to the example shown. Therefore, the software that does the calculations should be able to produce these labels.
In addition to labels, which may not be useful to clubs for anything other than grab and go packaged items, the software should also be able to produce reports that list this information in a way that could be provided to members and guests on request. There is no required format for the reports, so different systems will print different types of reports, and should be examined to determine if they would be appropriate for handouts.
Another key component of any nutrition module should be the ability to identify allergens and display them on labels and reports. This capability helps protect members and guests against consuming items to which they may be sensitive or allergic, but it can also protect the club from associated liability.
By printing reports on menu items that identify allergens, glutens, MSG or other components diners may be trying to avoid, servers can also be educated to inform diners. Many restaurants now ask diners if they have any food allergies or dietary restrictions before taking the order.
Only in the past few years has this information become more frequently requested. This trend is expected to continue, and at some point may even be mandated by the government for all food service organizations as opposed to the limited set now required to provide it.
Systems which allow inventory tracking and especially recipe costing are the ideal way for food service operators to gain this capability. Stand-alone nutrition systems, while effective in providing the required information, also require double effort. BR
THE FUTURE OF TENNIS STARTS HERE
We will give your tennis pros free tools and resources when they sign up.
Comprehensive curricula developed to help deliver the highest-quality instruction
Access to the Net Generation Mobile App where you can build custom lesson plans and connect to players in order to provide assessments and reward them with digital badges
Free customizable marketing materials and templates
Free listings in Net Generation’s searchable directory of local providers
A Net Generation welcome pack including coaching manuals
*Access to different features may vary based on your provider type.
MEMBERSHIP MUSINGS
BONNIE J. KNUTSON
Bonnie J. Knutson Ph.D. is a people watcher. A professor in The School of Hospitality Business, Broad College of Business, Michigan State University, Dr. Knutson is a member of the Country Club of Lansing and the Michigan Athletic Club. She can be reached via e-mail: drbonnie@msu.edu
Are You Better Than a Goldfish?
Leave it to Microsoft to answer to this somewhat silly question.
According to a study conducted by the tech company, people generally lose concentration after eight seconds, while the notoriously ill-focused goldfish loses it after nine seconds. In other words, we have a shorter attention span that those little yellow fish swimming around and around their little glass bowl.
To top it off, the researchers also found that the average attention span for us humans has dropped about four seconds since the mobile revolution began (about the year 2000). That is a 33 percent decrease. Yikes! These data highlight the effects of an increasingly multi-tasking, information-overloaded, digitalized lifestyle on our brains.
Welcome to club marketing in the world of Twitter, Tumbler and Texting, which is revolutionizing how we communicate with and market to members. Think about the last time you sat down and read a book or a full article in a newspaper or searched for information on a website that took more than three clicks. In today’s electronic world, we live by headlines, 280 characters in a tweet, and six-second Vine commercials. We skim and scan. We don’t study and read. Enter the Six-Word Story (SWS) into our marketing lexicon.
The Six-Word Story supposedly began with Ernest Hemingway, although history suggests that it existed long before him. According to legend, however, the novelist won a bet that he couldn’t write a complete story in six words. He then wrote: For Sale: Baby shoes. Never Worn.
The Hemingway story is an extreme example of a type of writing called flash fiction. Typically, it has a beginning, a middle, and an end. In this case, the first two words peak your curiosity and draw you in because you don’t know what is for sale.
The next two, really catch you off guard because the item is unexpected. Baby shoes are not something that you usually see for sale. And the final two words give you a context for the shoes being sold, opening up interpretation depending on your perception. Did the parents get too many pairs as gifts? Were they the wrong size? The wrong color? The wrong material or style? Did the baby die?
The last point about context is where the Six Word Story enters club marketing and strategic planning because it is a
great tool for you to gain a deeper understanding of [1] the core-essence (or heart) of your club’s brand, and [2] the connection your members have with their club. This goes for employees too.
Going back to the Hemmingway story, his six words form an immediate picture in your mind. You “get it.” The internet is awash in SWS videos, most of which are personal in nature. Some are sad, some are happy, but in any case, each forms a distinct narrative in your mind.
Take, for example, one of my favorites that I read somewhere: Played golf. Boss won. Kept job. Those six words say it all.
When working with clubs, I often use the SWS as a research tool to get a clearer understanding of the club’s two main pillars – its core-essence and member connection. Take, for example, the following stories pulled from five distinctly different clubs. Each is indicative of what the club’s members composed and give you a pretty good picture of what that club is – i.e. its vibe.
Joined club. Made friends. Have fun. Tradition and heritage: our club’s legacy. Building family memories in our club. Trained Hard. Got Strong. Reached Goal. Fair winds. Fair sky. Fair sailing.
In the first one, you can just feel an active, lively, energetic club. The second evokes an “old-guard” image with mahogany walls, silver settings and more formal parties.
Story three prompts us to think about a club with myriad countless children’s activities and lessons along with fun family events that go beyond Halloween and an annual Santa Brunch. Moving on to story four, a picture of vital, active members with penchant for health and wellness comes to mind. And, when imagining what the final story says, you can just see the nautical décor and the sail boat regatta with members sporting their logoed shirts and captain’s caps.
It is from such synopses of the various member stories that your club’s strategic marketing direction comes into focus.
BOARDROOM BASICS AND BEYOND
THOMAS B. WALLACE III
Thomas B. Wallace III, CCM, is a partner and search executive and consultant with Kopplin Kuebler & Wallace, a consulting firm providing executive search, strategic planning and data analysis services to the private club and hospitality industries. Tom can be contacted at (412) 670-2021 and at: tom@kkandw.com
The Road to Success Runs Through a Town Called Self-Awareness
I’m always perplexed when a leader is removed from their position and they say they had no idea it was coming. I believe that it is almost never a surprise.
Instead, it may be a clear indication that their intuition was ignored and warning signs weren’t acknowledged. Why and how? Because of a lack of self-awareness.
Have you ever been driving down the road and you’re not 100 percent focused on driving? The next thing you know your car drifts out of its lane. Road rumble strips or your car’s lane departure warnings shake you back into focus and safety.
You are now laser-focused on your driving again, grateful an accident didn’t happen while you were less than mindful. Being focused and self-disciplined on the road, and in your career, is one of the keys to survival for both.
Trying to get the right perspective can feel impossible. It can feel like trying to see the back of your car using a rear-view mirror. You need at least two side mirrors and a rear camera and then it can still be misleading.
You have to manually turn your head left and right, prop yourself up a bit all while using the mirrors to get a complete 360-degree reflection including depth…objects in the mirror may be closer than they appear. What about the lighting? Is it cloudy or dark? Is there a glare? Or is it nice and bright outside giving us a shadow-less perspective.
Our car mirrors are our introspection, a clear vision that leads to learning and discovering who
Board presidents that are really happy with their manager often tell us one of their favorite things about their GM/COO is that they are always well informed by them and their relationship follows the “no surprise” rule. Getting the right perspective on your career can be enhanced if you are willing to engage theses seven strategies. Remember, when it comes to your career the best surprise is “no surprise.”
Your career path is like your drive through the city at rush hour. Will there be obstacles, delays, distractions and speed traps? You bet! If our best vision is the tunnel variety, we lack self-awareness. We may find ourselves plowing through what lies ahead with our fingers crossed. It’s dangerous.
Before you crash or take a wrong turn in your career, let’s be mindful of those rumble strips and lane departure warnings. The rumble strips in your careers are mentors, and the lane departure warnings are mapping tools. They both live in a town called Self-Awareness. Mentors and mapping tools are available to anyone, but you need to be willing to do some really hard work, the work of introspection, which leads to perspective, insight and clear planning based on an awareness of your strengths and weaknesses.
Everyone has a perspective, but if there is missing information, that perspective may be flawed. Self-awareness can lead to paradigm shifts that will keep you centered in your lane, in control, and on a forward moving career trajectory.
you are, warts and all. The lighting is self-awareness, an emotional intelligence that accepts what you learn and makes the necessary changes or adjustments to fine-tune your perspective and map the road ahead.
Here’s where it can get painful. You can’t do it by yourself. Some people do have incredible insight into themselves and others, but that insight, even if you have it, still comes from a single perspective. Even the most willing among us to stare down our demons is missing something if you don’t have third party verification, affirmation, confirmation, and criticism. Those are the mirrors that can show us what we don’t yet see but is there nonetheless.
COVER STORY PACKAGE | BY
DAVE WHITE, EDITOR
Medinah’s Michael Scimo Selected Boardroom’s Distinguished Club President for 2018
“Leadership is the capacity to translate vision into reality. Mike Scimo has done that and much more. Medinah is a better club because of his commitment and hard work.” – Bruce D’Angelo, past president 2016-17.
And so go the accolades for Michael Scimo, president of Medinah Country Club in Medinah, Ill., upon his selection as BoardRoom’s Distinguished Club President for 2018. BoardRoom magazine this year is recognizing 26 Private Club Presidents of the Year – 2018, for practicing what they preach – leadership for the betterment of their clubs –board presidents or chairs who serve as the volunteer leaders of their club.
It’s the 11th year BoardRoom magazine has recognized the industry’s top private club presidents for their outstanding work. This year nominations and applications were received from different clubs throughout Canada and the United States.
“Our selection of the top 25 presidents and Michael Scimo as our Distinguished Club President signifies another successful search for leaders who have contributed so much to their private clubs and their member experience,” expressed John Fornaro, Boardroom magazine’s publisher and CEO.
“We honor board leaders, exemplary individuals, who go beyond the basic requirements of governance and work collaboratively with the club’s management. The award underscores the role that a board president and his leadership play in driving a club’s success and contributing to the club’s long-term health.
“The non-profit private club industry is the most difficult industry of which to be board member and a manager. Board members, who are also the shareholders (owners) of the club, are also the customers. Often fraught with conflicts of interest, a private club can be very challenging to manage,” Fornaro added.
“Through the process of collaborative governance, the general manager, the club’s president and the board members are meant to work collaboratively. We recognize board presidents that don’t delve into micromanaging. Micromanagement is not only is frustrating for management, but also wastes board members’ often limited time to do their actual job, which is directing … setting policy, and not managing the organization or operations. That’s management’s job,” Fornaro emphasized.
PICTURED LEFT TO RIGHT: MICHAEL SCIMO, PRESIDENT OF MEDINAH COUNTRY CLUB AND CLUB GENERAL MANAGER ROBERT SERECI
The impetus for BoardRoom’s top president recognition program comes from its sponsors, the Association of Private Club Directors, the parent organization of Boardroom magazine, and Kopplin Kuebler & Wallace, one of the country’s leading private club industry consultants.
“We have been privileged through the years to assist BoardRoom magazine in identifying some of the outstanding private club board members and club presidents throughout the country. These men and women give a significant amount of their time to the betterment of their clubs and lend their expertise to improving the governance model in the private club world,” explained Dick Kopplin, partner in KK&W, with Kurt Kuebler and Tom Wallace.
“As our team travels the country, we are pleased to see such dedicated club leaders who are truly committed to enhancing the club experience for their fellow members. It’s appropriate that these unpaid volunteers should be recognized for their efforts and along with BoardRoom magazine we salute them and want them to know we appreciate their efforts,” Kopplin added.
At least from the day I joined the Medinah board in 2003, our boards knew of the club industry’s views about Medinah’s shortcomings, and we all worked to change that image. To that end, in 2005, a strategic planning committee was formed. Our first task was to identify and retain a consultant…one committee member had a suggestion. He had a member friend, a business consultant, very busy traveling the world, but perhaps he would be willing to help. And help Mike Scimo did. Mike has continued to work to transform Medinah Country Club from that day to the present. He is most deserving of this recognition.”
Matthias Lydon, past president 2014-2015
Change is the important story for Medinah Country Club and a governance process that had changed profoundly in recent years. The drivers for change?
• The need for the Medinah board to think and act more strategically
• The need for more clarity in roles and responsibilities between management, committees and the board, and
• The need for more consistent, transparent and effective board operations.
“Addressing these governance deficiencies was fundamental to the club’s ambitious strategic planning initiative, which started in 2013 with the support of Global Golf Advisors, advising the Medinah board,” explained the club general manager Robert Sereci.
“Our president at the time, Matt Lydon, recognized the importance of transforming our governance process as a key enabler to the overall transformation of the club.”
Improving governance was equally important as membership development, capital planning, technology and financial excellence, and the outcome produced profound changes in how Medinah’s board operated.
The creation and adoption of a board policy manual (BPM), the first major change several years ago, provides consistency and transparency in Medinah’s governance. It also clarifies critically important board functions including:
• Annual objective setting and ongoing management of objectives
• Board and management roles and responsibilities
• Committee selection process
• Succession planning
• Annual board calendar, including general outlines for each meeting, and
• Defined process for taking action through approved motions.
The BPM, a living document, is enhanced with each board year. It’s also visible to the members through the club website, ensuring a degree of transparency in board operations.
Changes to the club’s bylaws and most notably, the adoption of the club’s strategic plan marked another important phase. Scimo, then vice-president and leader of the long-range planning committee continued Medinah’s transformation by converting the strategy, with the assistance of McMahon & Associates, to a detailed master plan. This provided a blueprint for strengthening Medinah’s value proposition for current and prospective members.
Medinah’s board also adopted a ‘consent agenda’ where individual committee minutes are approved in a single motion and this has dramatically reduced board meeting times. It helps ensure the board is focused on more strategic issues and activities to provide management and committees with guidance.
Change has been a multi-year effort and recently, because club committees had been given little guidance for how they should be run, who should serve and what the committees needed to accomplish, the board adopted committee charters. This provides clarity
for what committees will accomplish and aligns expectations among committee members.
More importantly, the charter ensures alignment of the overall board objectives and minimizes the prospects for misguided or rogue committee actions.
The club also evaluates the slate of committees to achieve the club’s strategic objectives. For example, at a time when membership growth was critical, the board created a membership development committee and management hired a membership development director. These moves, complementary to broader changes, helped drive the membership growth to record levels.
With the adoption of the board policy manual, Medinah’s board’s path is very clear and consistent year to year, much of which can be attributed to the board’s annual retreat, a process guided by principals of Kopplin Kuebler & Wallace.
Before each retreat, KK&W with the outgoing board completes a survey that provides insight into what is working well and where improvement is needed. The board retreat also plays a valuable role in getting the entire board engaged and committed to what the club needs to accomplish in the coming year.
“It helps that we have a knowledgeable and experienced third party facilitating to ensure that we exit our comfort zones, and that we are considering bold possibilities aligned with or complementary to our club strategy,” said Sereci. And of course, these retreats help engage new board members as they begin their terms as board members.
“We discuss survey results, and this is especially valuable when our results are compared to industry averages and best practices from other clubs,” Sereci explained. “No matter how well we think we’ve scored, it’s important to understand we can do better.”
This also leads to a discussion about emerging club trends, “and this rids our group of any notion that our work is ‘done.’ KK&W does a terrific job of painting the picture of an industry in transition, with shifting values and needs, and the creative and progressive ways top clubs are responding to these changes. It energizes the new board as we contemplate board goals and objectives for the coming year,” Sereci added.
“As I’ve been involved in the board retreats …and watched Michael Scimo in action, I’ve been hugely impressed with his thoughtful, respectful, inclusive and highly-effective style,” offered one of the retreat facilitators, Kurt Kuebler of KK&W.
“Collaboratively with GM Sereci, we’ve seen first-hand an iconic, well performing club elevate even further to one of the more innovative, forward-thinking clubs in America. It’s clearly evident that Medinah, under its collective leadership efforts, has recognized that being a great golf club and a great full-service country club simultaneously are mutually inclusive efforts,” praised Kuebler.
EYES ON THE BIG PICTURE
“Michael Scimo, as president, immediately understood the strategic scale and scope of planning Medinah’s future,” offered Henry DeLozier, a principal with Global Golf Advisors. “He has proven to be a process-driven leader who shared credit and accountability in equal portion. Most importantly, he did not cross the line from strategy to tactics. He has kept his board focused on the strategic purpose of the process.
“Following in a succession of courageous and dedicated leaders at Medinah, Scimo integrated the club’s broad reach and potential into a focused strategic planning process, which brought forth the best in the club’s servant leaders. The resulting strategy is bold and visionary…giving Medinah an uncommon forward lean,” DeLozier added.
Global Golf’s Stephen Johnston, who also has worked extensively with president Scimo, says, “Over the past few years, Medinah has made many changes to club governance with significant capital expenditures to enhance the member experience and maintain assets.
“This doesn’t happen without strong leadership which focuses on ‘doing what is right’ and letting individuals with the skills and expertise make change. Medinah has done an excellent job in having strong leadership.
“I cannot say enough about Michael Scimo. He listens and above all else keeps the club focused on what matters. Under his leadership tough decisions have been made. However, he insured the club remain focused on its strategic plan and let management and others implement the tactical aspects of the plan while keeping everyone accountable and maintaining the club’s vision and standard of excellence,” Johnston added.
“Michael’s leadership has allowed the club to succeed and evolve as it should. He is passionate about the club and more importantly is well respected by management, staff, fellow board members and the membership.”
Sometimes the story isn’t all peaches and cream. Like many clubs, in times of uncertainty, members become anxious…unsettled about the future of their club. But strong leadership often is the path to success.
“For most club boards the easiest decision to a destination is always the status quo and that’s what many have chosen to do,” expounded GM Sereci. “But unlike most club boards, our boards not only designed a path to get us to a new destination, but also provided great clarity on how we will get there.
XHIBTZ is a manufacturers representative and purchasing company taking pride in offering quality products and service for over 20 years. The company is a dedicated furniture and accessory provider to country clubs, yacht clubs, hotels, resorts, property management companies, homeowner associations, condominium associations, interior designers and residential and estate home owners, with a primary focus on exceptional customer service and client satisfaction.
XHIBTZ consistently receives accolades for going above and beyond and for delivering the best the industry has to offer in patio
TESTIMONIALS
I am pleased to recommend Steve Berlin and XHIBTZ Contract Furnishing. We have worked with Steve for many years for our outdoor furnishing needs and we could not be more pleased with the results. The service is always exemplary and the product is high quality and comfortable as well as beautiful. Our membership is thrilled! Steve Berlin always goes above and beyond to ensure that our needs are met - or exceeded.
Michael McCarthy, COO/GM
Addison Reserve , Delray Beach, FL
furniture, pool and beach furniture, sofas and chairs, and tables. The company also provides quality accessories such as cabanas, umbrellas, and custom cushions to complement outdoor areas, and custom furniture restoration service for limited budgets. The philosophy at XHIBTZ has not changed since its beginnings, “Our goal is to work with you and ensure you purchase the right product and service for your outdoor needs, while provide outstanding customer service.”
XHIBTZ — quality products and service without all the hype, smoke and mirrors.
I cannot say enough good things about my experience working with XHIBTZ Contract Furnishing and Steve Berlin. He is the consummate professional! Details, follow up, support before, during and most importantly AFTER the project. Steve goes to great lengths to make sure we are satisfied with the product, and that we a re on the right maintenance program to keep all items in order long after delivery. Our facility has never looked better!
Stephen J. LoGiudice, CCM, COO/GM
The Club at Ibis, West Palm Beach, FL
“At first, many members were skeptical and critical, and some threatened to resign. Others listened, asked questions and ultimately offered support. Having been through this process in other clubs, I can tell you this can be a very painful experience for all involved, especially for the club president and board. The courage required to undertake a club transformation like ours is usually unappreciated and unnoticed by the membership,” Sereci added.
“We continue to receive a tremendous amount of press and recognition for some of our ‘out of the box’ initiatives, be it the chicken coop, the food truck, the golf for life program or something significant like leading the design and programing of our new facilities.
“Much of that success is attributed to the support I receive from the club president,” Sereci opined. “Our team can have the best of ideas, but without a strong and supportive club president, it means nothing. I provide my team with a large safety net and encourage them to be innovative only because I know Mr Scimo has my back and provides a safety net for me as well. In return I am very protective of him and do my best to guard him from negative forces.”
So, has this governance transformation inspired other changes at Medinah?
“Absolutely,” remarked an enthused GM Sereci. “The most important outcome of governance transformation has been the pivot from the board’s overly operational focus to a more strategic focus. It created the ‘oxygen’ for strategic thinking and capacity to drive bold changes to the club.
“Medinah had a reputation, somewhat well-deserved, for micromanaging its staff. Confusion between the roles of management, committees and the board were prevalent, leading to frustration and lack of progress. We have significantly clarified the roles and responsibilities of the board, committees and management, allowing us to advance dramatic change relatively efficiently and effectively.”
This also means change for management. “For starters, there is great clarity on who is responsible for what. Our responsibility matrix, a key part of the board policy manual, identifies or clarifies the roles, responsibilities and authority of each governing body – the board, executive committee, committees and the general manager. There’s no ambiguity,” Sereci explained.
As any club manager will tell you, a general manager’s roles and responsibilities can vary tremendously from one club to another. At Medinah, the general manager/chief operating officer’s focus is on
1) team/staff development;
2) strategy;
3) operations and
4) member relations.
“My effectiveness is measured by membership and staff satisfaction, growth or retention in membership, achieving revenue targets, the club’s reputation in and outside of our community, and a strong balance sheet,” added Sereci, and at each retreat the board, given these priorities, evaluates the GM’s performance.
“However, the greatest benefit in my opinion is that there is tremendous amount of trust between the GM and club president. I am extremely open and transparent with my club presidents including president Scimo. I tell him everything and constantly seek his advice. Why wouldn’t I, we are on the same team. My fellow club managers gasp when I tell them this.
“When there is mutual trust, I don’t worry about micromanagement. Absent of mutual trust, how much a president is or is not involved is the least of my problems,” Sereci expounded.
CLEAR VISION
“Organizations rarely change because they want to. Change is always initiated by outside influences,” expressed past president Bruce D’Angelo.
“Good organizations provide effective responses when an event occurs. Great organizations look to the future and initiate change long before it becomes a crisis. The process Medinah embarked on transformed our outlook from one that reacts to one that looks toward the future. That transformation is never easy, it needs leadership from the staff, the board and the president.
“Leaders need a clear vision of the organization and where it is going, but a vision is of little value unless it is shared in a way as to generate enthusiasm and commitment. Leadership and communication are inseparable.” Words synonymous with the words, President Michael Scimo. BR
“For most club boards the easiest decision to a destination is always the status quo and that’s what many have chosen to do,” expounded GM Sereci.
“But
unlike most
club
boards, our boards not only designed a path to get us to a new destination, but also provided great clarity on how we will get there.
Robert Sereci, GM/COO Medinah Country Club
President Scimo Offers A Diverse Background
Michael D. Scimo, BoardRoom’s Distinguished Private Club President for 2018, a number of years ago rolled up his sleeves to get involved in his club’s governance process.
“Our vision has been to strengthen Medinah’s value proposition for current and prospective members. The key? Creating more year-round and family-oriented experiences, “ voiced President Scimo.
President of Medinah Country Club in Medinah, IL, until September 2019, Scimo has been a member of the club’s board of directors since 2011 and during the intervening years has held a variety of roles in club governance and strategic planning.
He has served as the club’s heritage committee chair, long range planning committee chair, and vice-president before becoming the club’s president in 2017.
Scimo, before retiring in October 2015, spent more than 30 years with Accenture, a $40 billion global professional services company with more than 420,000 employees serving clients in 120 countries. In his most recent position as global managing director, he served on the company’s global leadership council.
Michael resides in Wayne, IL with his wife of 26 years, Celeste. They have three sons: Dan, a technology specialist with Links Technology in Schaumburg, IL; Andy, a consulting analyst with Accenture in Chicago, IL, and Joey, a senior at Bradley University majoring in television and video production.
President Scimo is a member of the Board of Skills for Chicagoland’s Future, a non-profit that provides employment opportunities to more than 1,200 needy Chicagoans (annually) who have struggled to re-enter the work force after long periods of unemployment.
He is a member of the board of trustees of Bradley University, his undergraduate alma mater. He was named Bradley’s Distinguished Alumni of the Year in 2016. Michael also holds an MBA from Northwestern University’s J.L. Kellogg Graduate School of Management.
A prolific volunteer, Scimo is a member of the Commercial Club of Chicago and has served on the club’s Civic Committee. He also has served on the boards of Junior Achievement, the Civic Consulting Alliance, and the Accenture Foundation. BR
Medinah Undergoes a Transformation
In the early 1920s, a group of Shriners from Chicago’s Medinah Temple, sought to create a country retreat…in a space with rolling terrain, bountiful trees and an ample water supply.
The result…Chicago’s finest private golf courses and Medinah Country Club built in an area known as Meacham, in northern DuPage Country.
Shriners enjoyed their first round of golf at Medinah Course No. 1 in 1925, followed by course No. 2 in 1926 and Course No. 3 in 1928.
In the mid-1920s, while the courses were under development, Richard G. Schmid planned and designed the clubhouse, blending the classic lines of Byzantine, Oriental, Louis XIV and Italian architecture, lending the style and elegance still evident today.
Schmidt Brothers Construction Company served as general contractors and all three brothers, Otto, August and Ernest were Shriners and charter members of Medinah.
Today, Medinah Country Club, three years into its transformative Medinah 2020 plan, bears little resemblance to the early years for Medinah.
The scope of Medinah 2020 investments approved by members in 2015 included:
• Oasis remodel (2016) – $2.3 M
• Pool deck and new cabana (2018) – $0.7 M
• Heritage display (2017) - $0.7 M
• Grill remodel and new member bar (2018) – $2.2 M
• New deck construction (2018) – $1.0 M
• Golf learning center (2017) – $2.1 M
• Racquet center (2017) – $2.6 M
• General capital replacement and repairs (2016-18) - $10.0 M
Medinah Country Club boasts some outstanding achievements as a result of the Medinah 2020 program including:
• 275 members added, without reducing entrance fees.
• Currently 1,000 total members in all categories, the most on record.
• Lowest member attrition levels on record.
• 22 percent growth in revenue with no operating assessments, even during periods of extensive construction, and uncertain environment for operational budgeting.
• Overall increase in member satisfaction.
• Steady rise in staff satisfaction and drop in staff attrition. BR
2018 Top Private Club Presidents of the Year
Private club board presidents play a huge role in the professional operations of their club as volunteers working diligently with their board of directors and general managers, striving for well informed, but not emotional decisions .
BoardRoom magazine’s 25 most outstanding private club presidents for 2018, plus the selection of Michael Scimo of Medinah Country Club as the Distinguished Club President for 2018, exemplifies the focus on the leadership responsibilities, the accountability and the management of the board, while providing a healthy respect for the club’s macromanagement
These board presidents, chosen from clubs in the United States and Canada, understand the importance of working, effectively and efficiently, with their volunteer boards and the dedication that’s required from everyone with whom they work .
They practice what they preach – outstanding leadership to maintain best practices and an extraordinary member experience for their members clubs Systems alone do not insure a good board Key elements include commitment, competence, diversity, collective decision making, openness, transparency, effective communication with management and the membership, fiscal responsibility, development and establishment of the club’s mission, vision and policy direction, especially through establishment of a strategic plan
Successful board presidents draw upon the expertise of other board members, the club’s institutional memory and stewardship of the club’s resources As well, board presidents provide new board members and future presidents with information they need to perform effectively as board members BR
Congratulations to BoardRoom’s outstanding private club board presidents for 2018 .
Barfield
Thomas Bird
Bloom
Todd Bright
Paul Burke
Buck Claussen
Mike Curry
Park Country Club
Midland Country Club USA
Patrick J Fallon Burlingame Country Club USA
Valerie Fitzpatrick
Larry Guy
Terry Hill
Victoria Golf Club
Birnam Wood Golf Club
Canada
USA
Country Club of Spartanburg USA
Dr Tim Kingston Happy Hollow Club USA
Mark Leavitt The Fountaingrove Club USA
Ms Deanna B
Marcum
Michael McNamara
Cosmos Club
Fairmount Country Club USA
Vic Memenas El Niguel Country Club USA
William J Nissen Union League Club of Chicago USA
Ken Silverwood
William “Bill” Stevens .
Chester Valley Golf Club
Manchester Country Club USA
Richard E Straughn Mountain Lake USA
Ms Pat Thirlby Sand Point Country Club USA
Dr Joshua Weiss
Mrs . Anne Willcoxon
Tad Willenbrock
Four Seasons Golf and Sports Club
Moraga Country Club HOA
Glenmoor Country Club
John Young Monterey Peninsula Country Club USA
Michael Scimo
Dave Elder is senior director for RSM US LLP He can be reached at Dave Elder@rsmus com
How will South Dakota Versus Wayfair Affect Your Club?
You have probably heard some news about the recent South Dakota v Wayfair U S Supreme Court decision, but what does this mean for the typical private club from a sales and use tax perspective?
Before the issuance of Wayfair, the U.S. Supreme Court ruled 26 years ago in Quill v. North Dakota that the Commerce Clause mandated a taxpayer must have some physical presence in a state to be subject to collection responsibility for the state’s sales or use tax.
The presence of the taxpayer’s in-state customers, without more, did not create nexus and did not allow a state to impose its sales and use tax. This standard meant that vendors, sellers, or retailers would not have to collect sales and use tax in states they sold to where they did not have a physical presence.
The Wayfair decision was based on a South Dakota law enacted in 2016, which imposed a sales tax collection and remittance obligation on remote sellers without physical presence in South Dakota when gross revenue from sales of tangible personal property or services exceeded one of the following:
• $100,000
• 200 or more separate transactions
Since that statute was enacted, almost two dozen other states have passed similar laws or regulations.
From a sales tax collection perspective, it is unlikely that most private clubs will make sales in excess of $100,000 or 200 or more transactions in a given year in a state other than the state where the club’s facilities are located. If your club has significant out-of-state sales, the club should review sales information for other states while keeping in mind the thresholds established in the Wayfair decision.
Approximately two months after the Wayfair decision, half of the states that impose a state-wide general sales tax had addressed economic sales tax nexus. Over a dozen of those provisions were in effect at that time, with other states beginning their economic sales tax nexus enforcement on Sept. 1, Oct. 1, Nov. 1, and Dec. 1, 2018, and Jan. 1, 2019. State guidance has been provided weekly since the decision.
A number of states anticipate future guidance or enforcement as taxing authorities consider a regulatory response or issuing new policy. Over 40 state legislatures have already ended for the year, meaning enacting economic sales tax nexus provisions through statutes would require either waiting until 2019 legislative sessions, as some states will
likely choose to do, or calling special sessions. However, many states moved forward with enforcement through regulation or policy, rather than legislation.
Through the end of August 2018, the following states have enacted an economic sales tax nexus statute, promulgated a regulation, or issued final guidance impacting remote sellers post-Wayfair: Alabama, Connecticut, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Massachusetts, Minnesota, Mississippi, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Washington, and Wyoming.
These states have varying effective dates and compliance requirements – each provision must be independently analyzed. Additionally, new states are addressing economic sales tax nexus on a weekly basis, or revising their previous positions, and this list will likely be much longer in only a few weeks.
From a use tax perspective, you may notice some out-of-state vendors not currently collecting sales tax starting to charge you that tax on your purchases. This could be beneficial to the club as the accounting staff would spend less time reviewing invoices for use tax issues – however, accruing use tax on purchases where sales tax was also paid would create refund opportunities.
Should the club have significant out-ofstate sales activity, or if the club is unsure how Wayfair could impact interstate sales activity, please contact your state tax adviser to discuss compliance with economic sales tax nexus provisions and minimizing potential exposure. BR
Walter Oi, the Most Important Name Never Discussed in the Private Club Board Room - Part I
The economist, Walter Oi wrote a seminal article, “A Disneyland Dilemma: Two-PartTariffsforaMickeyMouseMonopoly” on the optimal pricing strategy for the private club industry, and published in The Quarterly Journal of Economics, 1971 .
According to Oi,
A two-part tariff is one in which the consumer must pay a lump sum fee for the right to buy a product. Examples of two-part tariffs are found in the rental of computers and copying machines, country club fees and the rate structures of some public utilities. The Disneyland economy offers a stylized model of this type of pricing policy.
If you were the owner of Disneyland, should you charge high lump sum admission fees and give the rides away or should you let people into the amusement park for nothing and stick them with high monopolistic prices for the rides?
The choice of the term two-part tariff is somewhat confusing and when the concept is taught in microeconomics classes today, professors and the authors of textbooks call the strategy a two-part price, the kind you see at Costco, Netflix, Amazon Prime, and the major cell phone carriers, just to name a few.
In this pricing model, consumers pay an upfront flat fee to become a consumer of a firm that is offering membership perks like discounts and free shipping and they then pay to purchase individual goods, as well.
We’re all familiar with the success of companies that have implemented this pricing strategy. As a specific example, Figure 1 shows historic stock prices for Costco. The secret to Costco’s success is their dues.
At Costco, customers pay a flat, upfront membership fee and they then receive a discount on individual items that they purchase within the store. According to Oi’s model, without an upfront fee and a discount on merchandise, their firm would be indistinguishable from other retailers and not as profitable.
FIGURE 1: COSTCO SHARE PRICE
Economists would say that when a customer buys something at Costco at a price less than the maximum price the customer is willing to pay, the customer enjoys “consumer surplus.” It is this consumer surplus that gives the customer the incentive to pay the flat fee, the dues, to Costco.
The size of the consumer surplus is manifested by shopping carts piled high, full parking lots and long check-out lines. Customers drive from the store with a head full of consumer surplus, which assures that they will renew the membership when it comes due.
Specifically, Oi proved mathematically that the optimal pricing strategy for a firm employing a “two-part” price is to charge an upfront lump sum tax for the right to become a consumer and then to set the price of its products equal to the marginal cost of the product to the company.
Interestingly, this idea can be applied to goods that have negligible marginal costs. To observe this, consider cell phones and online streaming services. While those who are old enough to recall the origins of the cell phone market remember that Mobile, Sprint, and the others tried a variety of combinations of monthly fees and usage fees, they now charge their marginal cost of zero for each call or text. This is the strategy Oi would have predicted at the outset based on his 1971 article.
Netflix is another success story where the customer pays a fixed monthly fee and no charge for an additional movie. Not surprisingly customers pay nothing for the next episode of Breaking Bad or House of Cards. What would you do if Netflix announced that each episode would now cost $2 each?
Ironically, the words “two-part” price are never mentioned by club consultants, by executives for management companies, in the board room or at a CMAA meeting. Is the private club industry paying the price for ignoring Oi’s advice?
The National Golf Foundation reported in “Golf Facilities in the U.S. 2018 Edition” that 75 percent of golf is public, equal to “the highest public-to-private ratio in the game’s history.”
Figure 2 below, created by combining the latest NGF data and the historic data contained in a report by the McMahon group, “Country Club Outlook 2008”, documents the secular decline of private golf in the U.S.
The golf industry is in a recognized and well-documented state of disequilibrium caused by a combination of increased supply and decreased
FIGURE 2: PERCENTAGE OF GOLF WHICH IS PRIVATE
Source: Country Club Outlook 2008, McMahon Group and Golf Facilities in the U.S. 2018 Edition, National Golf Foundation.
demand. While the number of golf courses increased by 4,567 courses (44 percent) during the period from 1986 to 2005, the number of golfers peaked at just over 30 million in the early 2000s decreasing to 23.8 million golfers today, as reported by the NGF. Consequently, since 2005 the number of golf courses has decreased by 1,070. This adjustment represents a textbook example of a market adjustment, but the progress is slow because of the difficulty of exit unique to the golf business. It is challenging to close a course because of issues like deed restriction and the political pressures that arise when communities and neighbors seek to preserve the open space and positive externalities to property values that the golf course creates.
Private golf continues to be the weak player in a declining industry. According to NGF statistics during the period of 2013 to 2017, the total number of golf facilities has decreased by 4.7 percent, while private golf declined by seven percent. The continued slide of the private sector of the market is especially concerning in the midst of an economic recovery. One would expect private golf to prosper in an economic recovery with improving consumer confidence, low unemployment, and consistent economics growth. What is wrong with the private golf club business? Is the private club industry paying the price for ignoring Oi’s advice?
In Part II, the authors outline the problem for private clubs and how Oi’s analysis should represent a paradigm shift in the way strategic issues are approached. BR
Lee Hoke holds a Ph.D. in economics from the University of Pittsburgh and is a full professor of economics at The University of Tampa. He served three terms as president of Buckhorn Springs Golf and Country Club.
Karla Borja is an associate professor of economics in the School of Business at the University of Tampa, in Tampa, Florida. Dr. Borja is an active scholar currently exploring economic development issues in the region of Latin America. Dr. Borja is also consulting small businesses in the Tampa Bay area.
Aaron D. Wood, Ph.D., is an assistant professor of economics at the University of Tampa, where he specializes in microeconomics and game theory. His primary research focuses on the use of evolutionary game theory and agent-based modeling to examine energy markets across time, though he also studies environmental and natural resource issues, crime, education and sports.
CHARLES ROSS
Charles W Ross CCM, CCE is Founder of 360º F&B Please visit www 360fandb com
Syncing Your Club Menu to Your Membership
Food and beverage are often the second largest source of income in a private club but have little impact on the bottom line unless underwritten to an extreme degree .
It is however a very important factor in the social life and experience of the members. Addressing the needs and wants of every group of members can increase inclusiveness, diminish complaint and promote engagement.
Club managers and chefs have their own tastes in dining and these can influence the offering presented to the members. We always have to remember that unlike privately held restaurants, which can offer a single ethnicity or style of dining, we must be all things to all people. This can sometimes be a tough reality to embrace.
The first step is to analyze the composition of your audience. What is the percentage of traditional long-term members, well-travelled gourmands, young families and the dietarily-challenged? Use this information as the framework with items that match your demographics in ratio to their representation. Identifying the most beloved dishes from each era can tell you where your member’s happy buttons are and push them on every visit.
Balancing the menu can be a fun and informative exercise. Searching the internet is an amazing source with menus from the 1950s, 60s and up to today, from the greatest restaurants and clubs. For reference in preparation, Craig Claiborne’s Ny Times Cookbook, Auguste Escoffier’s Guide to the Fine Art of Cookery, and the ubiquitous Joy of Cooking are essential to the chef’s bookshelf.
Sublimating one’s personal preferences does not come naturally, understanding that the goal to please every segment of your membership is challenging but essential to success. Creative outlet can be found in the specials and also addressing the smaller niche groups. Farm to table, vegetarians, world food, and all manner of tastes can be addressed, albeit in amounts reflecting the number of adherents to each.
Children’s food can be an after-thought, but it is a very important factor to your member moms. They may not order the healthy option, but it needs to be included. House-prepared renditions of popular items like chicken fingers with nutritious sides can help to broaden their palates and show that you care.
Memories of food experiences are powerful – Grandma’s apple pie, the barbeque on Beale Street, or the Bouillabaisse at that romantic café in the 12th Arrondissment of Paris. Recreating these in the club environment should always be in the traditional style and recipe. Regional classics like
the Hot Brown in Kentucky, Etouffee in Louisiana, or Turkey Devonshire in Pittsburgh will suffer by comparison to the original, if personalized.
Dining at the member’s favorite local restaurants is a must. House chair, the GM, chef, and food and beverage manager should do this with some regularity at different venues. It should be approached as a research project, but you can still have fun. Everyone should order different items, so you can see more of what they offer and how it is presented. Keep the conversation focused on food. Ask the waiter what their most popular or signature item is and test it as a special at the club and menu. This same strategy can be applied to your wine list. If you visit wine storage you will find any number of bottles of discolored old white wines and red wines with sediment leftover from a previous sommelier’s personal favorites. Their only value is found on the inventory sheet and should be promptly relegated to the kitchen for cooking purposes.
Wine, like food is tied to memories and the Pouilly Fuisse and Margaux enjoyed back in the day by your most senior members should have a place alongside the latest sauvignon blanc from New Zealand or Ribera del Duero on the cover of Wine Spectator. Here again, our personal taste in selection must take a back seat to the top 20 best restaurant selling wines. If you have a Marsanne or more than one Gruner Veltliner and not Sonoma Cutrer Chardonnay, you are missing sales and member satisfaction. BR
The newest addition to the award-winning FOOD-TRAK System’s mobility platforms.
With the FOOD-TRAK Mobile App (FMA) for Android or Apple devices, our clients eliminate printing, filling out and entering data from paper forms. Collect data where it lives, or look up information from wherever you are. Mobility equals efficiency! FMA Features Include:
Use your device’s built-in camera to scan barcodes, saving time and improving accuracy for all types of data collection. Print routing slips, invoice reconciliation reports and recipe right from the device to your network printers.
Join the leaders in the club industry who use the FOOD-TRAK System to manage and control their F&B costs and reduce or eliminate subsidies. Easily affordable and suitable for clubs of all sizes.
So leave your desk, hold the phone and call your FOOD-TRAK Account Manager at 800-553-2438 for more information.
TECHNOLOGY PERSPECTIVE
Software Champions
BILL BOOTHE
Bill Boothe is president and owner of The Boothe Group, LLC, an independent consulting firm that helps clubs understand computer technology, make good decisions and receive the highest value from their technology investment . During his 28 years in the club industry Bill has assisted more than 400 private clubs Bill can be reached at bboothe@boothegroup com
An Effective Approach for Support
It’s been 15 years since I have written extensively on this topic . I was hoping over time that the software champions concept would catch on throughout the private club industry and become a standard approach to help assure maximum use of club management software
Some of our clients have embraced the concept and it has proven to be a great success with them . But it hasn’t made much of an impact on the industry as a whole . So, I’m back at it again to encourage the use of this concept at your club .
One of the most difficult challenges in managing software for private clubs is providing adequate user support. Traditionally, clubs have looked to the software vendors to provide support – in the form of online/call-in customer support, documentation, how-to videos, user-group meetings, online and on-site refresher training, etc.
The common ingredient in all of these approaches is the same: The software vendor provides the assistance and expertise.
For years we’ve been encouraging our clients to add a critical ingredient to the traditional support recipe – support and expertise provided internally by club employees. This approach has proven extremely effective in clubs that have adopted it and kept it alive over a number of years.
Key players in the approach are called software champions – existing club employees (not technical specialists) from each club department, with primary responsibility for the core application software (accounting, membership, POS, inventory, website, reservations, communications) used within their home departments.
Our experience has proven that champions can greatly improve the club’s success in implementing and maintaining today’s complex application software. Yet it’s rare to find a club that supports a formal champions program. Instead, clubs depend on a few “computer literate” individuals to surface and “volunteer” for the champion duties. We recommend that clubs create a formal champions program to assure that new systems are implemented properly and that existing systems continue to function at optimal efficiency.
CHAMPION RESPONSIBILITIES
Software champions are responsible for a number of tasks. The ultimate success of the club’s software rests heavily with the dedication and capabilities of the champions. Here are the champion’s duties within a formal champion program:
1) Master the software applications – First and foremost, champions are responsible for mastering their appointed software application(s). Champions should receive complete and thorough training from the vendor on each application and should become familiar with all available documentation for those applications.
2) Pilot test the software. If new club management software is being installed, champions should lead the pilot testing program. This calls for the club’s champions to perform detailed testing of all software functions before taking the software live. The process includes documenting any functionality issues identified during testing and reporting them to the software vendor for resolution.
3) Take on-going responsibility. Champions take the lead role in operating their assigned application(s). For some champions this might include sole responsibility for an application, as in a small club with a single person (the controller) responsible for general ledger.
Or for a larger club, one food and beverage champion might have the primary responsibility for menu maintenance, with another champion responsible for new server POS training. The key to success is to have champions responsible for assuring the on-going operational success of the club’s core software applications.
4) Interact with the software vendor. Champions are in the best position to understand the club’s specific software problems/ issues and communicate effectively with the software vendor. In fact, the vendors are very supportive of the champions’ concept, knowing that well-trained club employees are far superior to untrained individuals in solving software issues.
To emphasize this value, some vendors specify that only well-trained individuals should be contacting the vendor support lines.
5) Interact with the club’s technology professional(s). For those clubs that employ their own professional(s), as well as those outsourcing that function to a local provider, champions act as their “eyes and ears” on the firing line to report issues as
HOUSE COMMITTEE
What’s in a Name?
Building a Case for Name Tags
LISA CARROLL
Lisa Carroll is a search executive and consultant with Kopplin Kuebler & Wallace, LLC, a consulting firm providing executive search, strategic planning and data analysis services to the private club industry She specializes in executive chef searches Lisa can be contacted at (561) 596-1123 and at lisa@kkandw com
To quote Dale Carnegie: “Usingaperson’snameiscrucial,especiallywhen meetingthosewedon’tseeveryoften. Respectandacceptancestemfrom simple acts such as remembering a person’s name and using it whenever appropriate. ”
We emphasize to staff the importance of learning members’ names and repeating them often. But do your members know the names of your staff? And I mean all the staff that they interact with? Do your staff members know all the names of their fellow associates?
Recently, I asked a board member of a very long-traditioned club if they ever considered using name tags for their employees. The board member’s reply: “Oh no. We expect the staff to know the members’ names, so the members should know the staff’s names also.”
Wait. What?
The answer is name tags for all staff, all the time, as part of the uniform. And it’s best to start from the top down with the general manager/chief operating officer.
Wait, you want the GM/COO who has worked at the club for over five years to wear a name tag? The answer is “yes.” The best leaders lead by example. If you expect to drive an initiative, you better live it yourself.
Name tags inform the staff and the members. They make everyone an equal part of the team – tenured staff and new staff alike. They increase the odds that someone will call the associate by name. They differentiate staff members from other members and guests. They make everyone feel more comfortable.
We have a tendency to gravitate towards the people (staff and members) that we know – especially those we know by name. What about the new staff? Will they feel included if nobody knows their names? Will members approach them as readily if they don’t know the staff member’s name? Everyone likes to be called by name.
How do you know for sure that a person standing on the floor is a staff member and not a member or guest? When I’m standing on an airplane while wearing a dark suit, I am often mistaken for a flight attendant!
You cannot just do this part way. The name tag needs to be part of the club uniform – everyone’s uniform. If a staff member shows up without a name tag, send them to their supervisor to have a new name tag made. There are many reusable name tag systems available to generate a new name tag on the fly. This reinforces how important it is to identify yourself to members and fellow associates.
I know a GM/COO, at a very long-traditioned club, who recently incorporated name tags as part of the club uniform and has heard many positive comments from grateful members and staff.
If you do not already use name tags, consider adding the name tag as an essential part of your club’s uniform. It will help to create a culture of inclusion for the staff and information and communication for the members.
A person’s name to that person is, “The sweetest and most important sound in any language,” according to Dale Carnegie in his classic book, How to Win Friends and Influence People. Use name tags as part of the uniform to increase employee name recognition and improve their experience. BR
“We
“Creative
Don Smith President, Board of Directors Edgewood Country Club
HOUSE COMMITTEE
TODD DUFEK
Todd Dufek is the president of the Locker Room Managers Association (www yourlrma com) with over 250-member clubs in nearly 40 states He has been a locker room manager at The Country Club at DC Ranch in Scottsdale, Arizona for 20 years Todd has authored four locker room related books and a 6-month training program that is currently being used by several clubs across the U S Contact him about a free membership in the LRMA at yourlrma1999@gmail com
Board Members: Can You Guess What Department This Is?
Hint: It’s one of the largest departments in your clubhouse. As a board member, you may have never thought about this area of the clubhouse as the roomiest. And, if you add another section of the club that is often associated with it, this area could comprise nearly half of the clubhouse proper.
Hint: It’s the only place in the club where members can truly be themselves. Is this possible in the mixed grill? Main bar? Club pool? No way! If you focus on where the sexes mingle at your club, this hint will not help you figure out what department this is.
Hint: It’s the only location in the club where members keep their most valuable personal possessions. Simply put, members trust the staff in this department to watch over their wedding rings, Rolexes and some of the most precious, priceless and sentiment filled possessions. Years tick by with none of the invaluable member and guest property going missing or stolen. And those that work in this area have access to every single item.
Hint: It’s the only department in the club that can make a member/businessman look more professional. Alright, I’m willing to admit that after a strenuous workout or even following a massage that a member might leave a club feeling more confident.
However, this department makes a business person not only look more professional, it is something that an image consultant will insist a person have in their possession. In fact, I know a consultant that will not work with a client until this aspect of their personal appearance is taken care of. Want to venture a guess what department I’m talking about?
Okay, okay, I know you figured – the locker rooms because I’ve authored numerous articles for BoardRoom magazine on the topic. My goal? To get board members to think about this department from a slightly different perspective. And in so doing, have you reevaluated its relevance to your country club’s culture.
And if you do not already do so, look the value in what it has to offer; the variety of services and amenities that can be made available to members and guests (personal grooming products, showers, steam room, manicures, pedicures, massages, dry cleaning, shoe: shining, respiking, stretching, dying and repair).
Many clubs are adopting this new paradigm. The evidence? Clubs across the country, if they haven’t already done so, are planning on renovating their locker rooms and asking for member input.
You don’t need another hint to see that locker rooms are now viewed as playing a huge role in enhancing the overall member experience, as well as member retention.
By the way, the image consultant’s pet peeve that he insisted his clients possess before he would work with them? Polished shoes. BR
EXECUTIVE COMMITTEE
LARRY HIRSH
Larry Hirsh, CRE, MAI, SGA, FRICS is the president of Golf Property Analysts (www golfprop com), a leading golf and club property consulting, appraisal and brokerage firm based in Philadelphia . He blogs on variety of club and appraisal issues at http://blog golfprop com
The Cost of a Round of Golf
How Much Is Your Share?
When most people think about how much it costs to play golf, they consider green fees, membership dues and other costs of playing the game . Few, if any golfers ever think about how much it costs the golf course or club to produce the round(s) of golf one might play .
I decided to explore our database and examine what golf courses and clubs spend to provide a round of golf to their members and customers with the focus on golf course maintenance. Since we often engage in conversation about the dollar volume of maintenance budgets, I thought it’d be interesting to calculate how much golf maintenance costs in the following terms:
• Maintenance cost per round
• Maintenance cost per golf member
• Maintenance cost as % of gross revenue
Of additional interest were the following benchmarks:
• Rounds of golf per member
• Gross revenues per member
• Gross revenues per round
We looked at private clubs surveyed during 2016, 2017 and 2018 and identified nearly 400 clubs that we’ve researched. These clubs were located in 24 states, in a variety of climatic regions and range from small revenue clubs ($400,000) to multi-course facilities with $33 million + in revenues.
With a sampling of nearly 400 clubs, some conclusions can be drawn from the data. As one might expect, the ranges are quite broad, however the data shows some results that would most likely be expected.
The typical private club generates between 19,000 and 20,000 rounds of golf per year per 18-holes. The typical club generates approximately 60 golf rounds per membership and spends between $1 and $1.2 million on golf course maintenance.
These expenditures show a typical cost of approximately $54 to $62 per round or $3,300 to $3,400 per member for golf course maintenance, which hovers around 20 percent of gross revenues of the club.
Obviously, there are extremes (as shown) but there can be a variety of reasons for departures from the norms, which can include limited membership/play, budget limitations, physical challenges of the property and other considerations.
While there will always be variables to consider, such as climate, size of maintained areas, cost of water and labor and physical characteristics of the property, looking at the cost to “produce” a round of golf sheds light on the resulting cost of membership and green fees.
As reflected in the data, it costs more to produce a round of private golf than daily-fee, whether looking at it per round or as a percentage of the club’s gross revenues. To those operating or considering purchasing a golf facility, this analysis illustrates a metric not often considered in the competitive market environments we inhabit. To the golfer lamenting the cost of playing golf, this analysis adds perspective and might shape demands. Golf course maintenance is usually the largest cost of any golf operation. The cost only goes down when sacrifices in conditions are made for budget constraints. The question we all should ask is whether these costs are economically justified both from the operator’s and consumer’s viewpoint.
We observed one private club this year, which uses heat and drought resistant fescue throughout the golf course. The result was excellent playing surfaces for costs way below that of typical private clubs, enabling them to limit membership and create a less crowded, more exclusive experience while maintaining economic feasibility.
EXECUTIVE SEARCH
“The executive search process was well-executed with timely updates and coordination. I was very impressed with the communication, updates, and accessibility. Any club would benefit from their contacts, resources, and experience in the business of golf.”
GBN recruits the most accomplished General Managers, Directors of Golf and Head Professionals from across the golf industry. Our search team diligently researches, plans, recruits and coordinates all aspects of the recruitment process which ensures exceptional results. We have intentionally combined the highest level of industry experience with global expertise in executive search. The result is an unparalleled outcome for our clients.
Patrick Seither PRESIDENT/CEO
Bob Ford PARTNER
Dave Ransom PARTNER
“We retained Golf Business Network (GBN) to assist us in the search for our new Director of Golf at Mediterra. The professionalism, knowledge of the industry, and timely communications that the GBN team displayed throughout the process contributed heavily to the success of our search. The firm’s great database of talented candidates and the team’s attention to detail were key in providing the most comprehensive selection of finalists for our property. I would confidently recommend GBN to anyone looking for a top tier search firm for any golf staffing needs.”
Carmen
J. Mauceri, CCM The Club at Mediterra
For more information, please contact Patrick Seither at 919-372-8220
Nick Jacovides, Club President - Bayville Golf Club
Private Club Board Seats
Nominating
Remains an Important Element
Recruiting members to sit on the governing board is an essential part of good governance and can be either a very thoughtful, productive activity or a last minute after thought of begging and pleading to “get someone to run.”
We have a group of 237 managers and directors with whom we communicate on a wide array of club issues, and asked the managers in this group several questions pertaining to voting rights and recruitment. Here are the results from 118 responses.
First, we asked who could vote and found that over 71 percent of the respondents allow only one vote per membership. We then asked if the “non-voting” spouse/significant other could serve on the board. Sixty-four percent (64%) of the clubs do not allow the non-voter to hold a board seat.
Some clubs allow persons not associated with the club a seat on the board because of their expertise, but very few actually follow this option. Unlike corporate boards, clubs tend to rely on their own membership, regardless of the needs.
Oftentimes contested club elections can be less than gentlemanly or are just a matter of who you know from the 19th Hole. Similar to the Club Management Association of America’s board elections process, private clubs have been moving away from contested elections towards the slate model.
This was confirmed by 69 percent of the respondents answering “No” to the question “Are the elections contested?” Ninety percent of the respondents elect members through a slate prepared by the nominating committee.
Evidence suggests that the nomination committee could be the most important and influential of all standing committees within a private club as it establishes the composition of club leadership.
When it comes to the nominating committee, Thirty-eight percent of the respondents have board-selected members of the committee. Twenty-four percent reported that the committee is determined through specific bylaws, and thirty-one percent reported a combination of board selection and bylaw specific (for example, bylaws may specify the number of committee participants, that one or two past presidents hold seats and allow the existing directors or president to choose the remaining participants).
Managers are not usually directly involved in the process but should pay close attention to whom is being nominated.
Corporations can be very methodical in the board member selection process and generally fill a position according to the ex -
pertise needed to best support the business activities. In the club business, while we often talk about adding candidates with expertise, it most often falls to someone’s friend or anyone who is willing to serve or run.
Christa Farr Evans, CCM, CCE of Vestavia Country Club in Birmingham, Alabama, sent our group an excellent matrix that helps make the process very efficient. (This matrix can be found at niven.cc under the “Templates and Guides” tab).
We closed our survey with the politically-incorrect question, “Has your board president ever been female?” Leaving aside any Bruce Jenner reference, we find that forty-four percent reported having a female president. As research tells us, having women on committees or for group work, makes the committee more productive, and it follows that having women on the board is beneficial.
The nominating process is one of the most important elements for clubs. Establishing the committee and having the members in place throughout the year allows the members to be recruiting continually. Utilizing Ms. Evans’ matrix will help guide the process and target the types of members that will be most beneficial to the leadership. BR
MacDonald Niven, MA, MCM, CCE is CEO of Lakewood Country Club in Rockville, MD, coordinates research for Niven Research and can be reached at (510) 439-8522 or via mail: mac@niven.cc.
David D. Cecil, CCM, CCE is Chief Operating Officer / General Manager of Siwanoy Country Club, Bronxville, NY. He can be reached at: 914.337.706 or via email: DCecil@siwanoycc.com
Fiddlesticks Country Club, Fort Myers, Florida
EXECUTIVE COMMITTEE
WHITNEY REID PENNELL
Whitney Reid Pennell is president of RCS Hospitality Group. Ms. Pennell is the creator of F&B Service Boot CampTM and RCSU, a full motion video based interactive virtual training portal. RCS specializes in strategic planning, operations consulting, F&B management, and employee/manager development. For more information, (623) 322-0773, www.consultingRCS.com or whitney@consultingRCS.com.
Are You Capable of Transformation?
“Learning and innovation go hand in hand. The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow.”
– William Pollard
Our world has seen unprecedented disruption in many industries, including ours.
In response to these disruptions, many clubs are looking at their own evolution: How to generate new membership value, unlock new opportunities, drive revenue growth, and capture untapped efficiencies.
But how do we transform in today’s convenience-driven, hyper-networked, casual society with technology-dependent employees serving a multi-generational membership base with a shrinking workforce?
That’s a hard question in any industry, but ours is one that has been largely steeped in tradition, etiquette, formality and is particularly reluctant to change while demands for excellence and superior service remain.
The irony in this dynamic is that change and transformation are exactly what is necessary to remain relevant and sustainable for generations to come.
Transformation today happens at dizzying speeds. What used to take several years is now expected to happen in a season or within a year. Rapid and laser-focused transformation is not something many private clubs are ready to undertake, or they are simply unprepared to do.
If you are in the transformation ‘boat’, here are a few lifelines to help you get started:
• Mission: You must be clear about your mission or the rest of the list doesn’t matter. Who are you? What makes you special? Why will someone choose you? Where are you heading? Why does that matter?
• Integration: Without integration of strategy and operational alignment, nothing can or will change.
• Processes: An efficient set of processes designed to deliver specific results and leaders who are capable of holding staff accountable for them allows consistent product and service delivery.
• Insights: You can’t measure what you don’t monitor. Knowing what information to track and monitor is key in setting up your point of sale system, accounting reports, inventory, etc.
Use this relevant data to make decisions. Private clubs have a notoriously difficult time making strategic decisions because it may not feel good (because of the owner/customer and friendship dynamic) even though the data indicates a clear direction.
• Talent: We are in a well-documented labor crisis. Yet some still expect managers to work 70-plus hours per week, offering an office that doubles as a coat room, then question their high turnover rates.
It’s time to invest in your human capital, employees. The employees and managers are your competitive edge. They create and deliver the member experience. Why are they still the last line of investment on your budget?
• Technology: Many improvements to the member or employee experience can be leveraged through technology. However, most technology is only as good as the setup, monitoring and maintenance of it – not just the use of it.
It is time to take a longer look at the value proposition. Yes, you must sometimes buy the revenue you want through a renovation, and many have. But what’s next? How will you remain relevant in these rapidly changing times?
Leaders today must be focused on continuous improvement and evolution for a wide variety of membership needs. The club industry as a whole is evolving – there is a club for just about everything these days – car and racing enthusiasts, archery, hunting, shooting, sporting, water sports, hiking, food enthusiasts, working women, you name it, there is probably a club in existence or on the horizon.
Let’s make some resolutions for 2019:
• Think out-of-the-box
• Listen to your members
• Create smaller clubs within your club
• Use data-driven change management solutions
• Invest in what matters to the members
• Become an employer of choice
• Solicit and keep leaders who are responsive, enthusiastic, innovative and capable to adjust quickly to evolving times. BR
EXECUTIVE COMMITTEE
FRANK VAIN
Frank Vain is president of McMahon Group, a private club survey, strategic and long range planning consulting firm based in St. Louis, Missouri. He can be reached at fvain@ mcmahongroup.com
Introducing Governance Practices for the Modern Club
The first step toward having a great club is to have a great board. Here are some best practices to get you on the right track.
Almost every aspect of today’s member experience is different than it was only a decade ago, and with clubs investing record amounts of capital into their facilities, more changes are on the way.
While their quest for relevance has them offering new activities, re-writing their policies and adding new programs, the process most clubs employ to form their board and carry out its duties is often the same as it was in less challenging times.
As evidenced by the decline in the total number of private clubs, the increase in acquisitions by third-party investors and growth in management companies, it is clear club governance is under pressure, and often short of the mark.
Many current and former directors we interview express disappointment in their board experience, often falling short of both their personal expectations and what the club needed to succeed.
They cite a lack of orientation and training, find the meetings focused on committee reports and other trivial matters, or the tasks they ultimately performed didn’t make use of the skills they brought to the table. Without foundational items like a strategic plan or a clear set of annual goals, there is no self-assessment to clarify success of failure. There is a strong sense that they are constrained by a dated system.
In order to succeed in the new environment, member-owned clubs should reengineer their governance practices. This includes developing greater clarity of the task at hand, getting the best people involved in the process and then communicating with your stakeholders to build alignment. Unfortunately, most club boards remain too focused on day-to-day operations to address these bigger picture issues.
The stakes are higher for today’s boards as they confront complex challenges, ranging from the financial overhang of the Great Recession, changing demographics and lifestyles, rising and falling popularity of social and recreational activities and the challenge of getting existing members to invest in the future.
Serving on a club’s board is no longer about deciding on the format of this year’s member-guest or New Year’s Eve Party. The club’s viability and sustainability are often at stake, which is a heady task for volunteers who often have other important things to do in their lives.
In order to succeed in the new environment, member-owned clubs should reengineer their governance practices. This includes developing greater clarity of the task at hand, getting the best people involved in the process and then communicating with your stakeholders to build alignment. Unfortunately, most club boards remain too focused on day-today operations to address these bigger picture issues.
SETTING THE TABLE
The starting point for having a great board is to have a great process for identifying, grooming and selecting your leaders. This begins by replacing your nominating committee with a board development committee.
Having nominations be the goal line suggests getting new directors is a one-time event instead of the essential task with long-term consequences that it is. Because it sets such a low bar, clubs often approach it in a perfunctory manner, starting too late in the cycle with too little vetting of the candidates.
LESTER GEORGE – GEORGE GOLF DESIGN
WINNER OF BOARDROOM MAGAZINE’S “GOLF COURSE ARCHITECTURE FIRM OF THE YEAR” AWARD 5 YEARS IN A ROW!
VESTAVIA COUNTRY CLUB
AWARD- WINNING RENOVATIONS
George Golf Design is immensely proud to have been named BoardRoom magazine’s “Golf Course Architecture Firm of the Year” five years in a row Lester George’s list of design and sustainability awards continues to grow. While he is nationally renowned for high-profile new course designs like Kinloch Golf Club and Ballyhack Golf Club, both of which have appeared on a myriad of “best” lists, his golf course renovations are awarded equal design accolades Most recently, Lester George’s renovation of Vestavia Country Club landed on Golf Digest’s Best NEW Course list for 2018.
Working with existing clubs to modernize their facilities while maintaining the character and design intent of the course is one of Lester’s great passions. His restorations of The Old White Course at The Greenbrier, The Country Club of Florida, The Country Club of Virginia James River Course, and Willow Oaks Country Club all won national awards and are ranked both regionally and nationally. Lester and his team are currently working to restore several historic golf courses, including a bunker renovation at Cavalier Golf and Yacht Club made possible by an exciting new discovery of historical evidence of the original Charles Banks bunker designs.
With 30 years of experience in master planning, renovation and restoration, campus planning and repurposing Lester George is an industry leader in golf course architecture.
Our recent renovation of Vestavia Country Club in Birmingham, Alabama was listed among Golf Digest’s Best NEW Courses of 2018.
THE COUNTRY CLUB OF FLORIDA
George Golf Design is once again working with the Country Club of Florida, this time to upgrade the CCF practice facility. In addition to upgrading the practice facility, CCF’s bunkers and greens will be renovated in the coming months. Lester led the club through a renovation 12 years ago, and he has continued as a design consultant for the Country Club of Florida in the years since
VCC Photos by Evan Schiller
The board development committee is a standing committee that performs a central role in the governance process. Duties range from setting criteria for directors, identifying and recruiting new directors, developing orientations for new governors, assisting in annual goal planning and assembling a cadre of advisors to keep the board current on industry trends and best practices.
They should work with the incoming president to set the agenda for the annual goal planning session and develop the self-evaluation tool that measures performance at year-end. Fortunately, most clubs have moved away from contested elections, using the slate method instead. For this approach to be effective and take hold among the membership, the board development committee must establish criteria for what makes a great director and reach out to committee chairs to identify up and comers in the system.
They ultimately interview candidates to affirm their willingness and temperament to serve and communicate the rationale behind their selection to the membership. This is how you form a board that has the skills, attitude and diversity of opinions to lead effectively.
tunity at most clubs. These members have signaled that they have the passion and willingness to get involved, but they are often kept in silos from one another and often develop their own agenda without insight into the club’s overall direction.
The leadership must start the year by explaining the club’s vision and key issues to this group and outline ways in which the committee members can help move this agenda forward. When committees develop their own agenda of issues, they bring off-target ideas to the board that doesn’t support them.
This increases the frustration level and wastes time and resources. When properly enrolled in the club’s strategy, standing committees can be one of the most important tools in driving the club forward.
COMMUNICATE TO BUILD ALIGNMENT
The prescription for any board that wants to improve clarity and create alignment is to overcome their fear of meeting and communicating with the membership.
Once there is a plan - strategic, capital or otherwise - educate the membership about its merits and build consensus for action. The reluctance to interact with the membership
Getting out in front of the membership and being clear about the club’s mission and purpose is an essential duty of leadership, yet too many boards fail to educate their membership about external and internal issues and suffer the consequences...The key to having strong and successful member-owned and governed clubs is to form a partnership between the governing board and operating management. This begins with a governance makeover under the thoughtful leadership of a board development committee.
SET YOUR STRATEGY
Once the right folks are around the table, they need to develop a strategic plan. It is essential that there be clarity around why the club exists and what it is striving to become. As with any journey, it is essential to know your point of departure.
This should include collecting member input through a survey and a critical analysis of your marketplace and competition. The board can then use these data and facts to make valid assumptions about the future and define the club’s purpose. Some might see this as wonky stuff espoused by management gurus, especially entrepreneurs who often make up a good portion of country club boards, but it works.
The lack of a clear sense of purpose and direction is a critical weakness at most member-owned clubs. It’s why they wobble from personal agenda to personal agenda each year rather than make consistent progress toward a known goal.
Engage your most ardent team members (sub head)
Engaging with the standing committees is a missed oppor-
often gives too much credence to the rumor mill and the vocal minority.
Getting out in front of the membership and being clear about the club’s mission and purpose is an essential duty of leadership, yet too many boards fail to educate their membership about external and internal issues and suffer the consequences.
To change the dynamic, create a board communications plan separate from your regular communications about activities. This could be a quarterly board report as well as regularly populating the governance section of the club’s website. Well-researched and articulated plans attract supporters and achieve results.
The key to having strong and successful member-owned and governed clubs is to form a partnership between the governing board and operating management. This begins with a governance makeover under the thoughtful leadership of a board development committee. BR
“The process could not have gone better. Your connections, expertise and guidance were the foundation for our Board’s ability to evaluate the best candidates and to think clearly about securing a bright management future for our club.”
Patricia Thirlby, President Sand Point Country Club, Seattle, WA
Specializing in General Manager/COO, Director of Golf, Golf Course Superintendent, Executive Chef, Racquet Sports Professional, Community Association Manager, Assistant General Manager, Clubhouse Manager/Food & Beverage Director and Fitness Director searches, as well as Strategic Planning and Consulting Services for private, resort and developer-owned properties.
Leadership Tools and Topics for Private Club Executive Chefs and Those Aspiring to Be!
March 9 - 10, 2019 New Orleans Country Club
March 10 - 12, 2019 Hilton New Orleans Riverside TWO CULINARY CONFERENCES FOR PRIVATE
Chef to Chef Conference is a can’t-miss event showcasing F&B in the club and resort industry.
RICHARD KOPPLIN KURT KUEBLER THOMAS WALLACE LISA CARROLL
JACK SULLIVAN ARMEN SUNY
LEN SIMARD
SAM LINDSLEY
Clubs Need to Be Aware The Times They Are A-Changin’
TONI SHIBAYAMA
Toni Shibayama is a broker/risk consultant for S&K Insurance in Southern California. She has more than 15 years experience in risk management, job safety, Workers’ Compensation, wellness and HR consulting. She can be reached at toni@sk-insurance. com and by phone at (213) 627.5304.
In California we are seeing the tides change continually in a direction that is distinctly unfavorable for employers.
And at the forefront nationally, as well as in California, is the issue of mandatory training requirements and harassment in the workplace. This means that not only do you have to train your managers every two years, you now must include in your training areas such as gender and sexual orientation. And to top it all off, you must have proof that you have conducted your training program by showing the signatures of those who have attended. It’s important to make sure all of your managers follow your policies and procedures.
Consistency is the key when avoiding claims of discrimination, as well as retaliation claims there is also a scattering of new questions being posed: What are the new requirements if a government agency comes to request documents from your company? What is the new mandatory posting? What should I do if I have a visit from ICE? Is it imperative that I review my I-9 forms for accuracy before they are audited?
With some guidance, planning and training, clubs can protect themselves from this risky business environment.
First off, it’s important to know that sometimes Cal-OSHA will show up on your doorstep unannounced…someone who can shut down your business. So that’s not good.
It’s not uncommon for many employers to have an unexpected visitor show up and spend an hour taking pictures and requesting documents that must be produced within 48 hours. So make sure you have an average of 12 required documents ready to hand over, that you do a self audit using the Cal-OSHA sample forms, that you have an expert do an on-site audit and fix potential serious and willful violations, and that you have your training sessions with signatures of all of the participants ready.
The best way to avoid employee discontent, and possibly legal retribution, is to be aware of how your managers treat and talk to your employees. If it is the old school way of screaming and yelling, then know that this technique just doesn’t fly anymore.
Why? Because we now have laws that require people in the workplace be treated with respect. And this is something that must be included in your mandatory training. Do your managers know how to handle difficult situations and disciplining employees properly?
If you don’t know the answer to this question, it is important that you find out very quickly, and right any wrongs that may be occurring.
Last, but no less important, is the issue of our aging workforce. What do you do when you have a popular 20-year employee that just can’t do the job anymore? It puts clubs in a sticky situation. But it doesn’t have to be like that.
By having a frank and open discussion with the employee, both parties can often come to a mutual understanding and, ultimately, come to a mutually-agreeable solution. Employers have multiple options before considering terminating employment, often by using HR to identify and find solutions, and then implement them.
Remember, your employees are all watching to see how you treat long-term loyal employees, as they are aware that someday they might find themselves in the very same situation. If fear sets in, then you are sure to see fraudulent workers’ comp claims, unhappy employees and a reluctance to train newer employees.
It is important to ask your employees what their long-term goals are, can they still do the requirements that come with their job, are they interested in working in other departments, or are they looking to train newer employees? Do they want to work only part-time?
Again, it’s an ongoing conversation with their manager and human resources personnel that will provide the answers you seek and head off any potential problems down the road.
As an employer, the road is constantly shifting under you. But there are resources and people with valuable skills available to help keep you on the right path to managing your risk and keeping the cost of your insurance to a minimum. BR
WINNING STRATEGIES
JERRY MCCOY
Jerry N. McCoy, MCM, is the president of Clubwise, LLC, a consulting firm specializing in strategic planning, master planning, operational audits and governance issues. Clubwise is a Consulting Company of the Year and Strategic Planning Company of the Year BoardRoom Award winner. Jerry received the Lifetime Achievement Award from BoardRoom magazine. He can be reached at www.clubwiseconsulting.com or CMAAMCM@msn.com
What is Your Leadership Quotient? Are
You the Salt and Light of Your Club?
“I am not afraid of an army of lions led by a LAMB. I am afraid of an army of sheep led by a LION.”
– Alexander the Great
Have you examined your leadership quotient (LQ) recently? The LQ is how other people feel about your leadership skills. That means both those people under your supervision and those that may supervise you.
Quick, anonymous surveys will sometimes open your eyes as to how others see you. Let’s look at some strategies and best practices used by great leaders.
There are two types of leadership to deal with in the club industry: Leading your staff and leading your superiors. Every club has strategies. They may be a part of a strategic plan or not. Wherever your club is in strategic thinking, your leadership role will not be about changing strategies as much as it will be about the ability to execute concurrent strategies.
I recently heard a lecture about salt and light. In first century Roman times salt was used as a preservative to protect food from spoiling. When a Roman soldier got paid they would also get an allotment of salt.
If the soldier was lazy others complained. This is the origin of the saying “He is not worth his salt.” Are you preserving your business and protecting it from deterioration? Bernard Baruch noted, “Millions saw the apple fall but only Newton asked why.”
Having a compelling vision about a comprehensive plan and then relentlessly implementing it is one kind of leadership. Getting people to follow is another critical aspect of leadership. Are you being the salt and light?
Salt creates flavor in food. People pursue that which heightens their desire. If you are the salt you will create interest in your goals. Salt also prevents dehydration, which makes you weak. Are you the salt that makes people stronger? We all know that if salt loses its flavor it is useless. Why do we combine salt and light for leaders? Because they both fill an important role in leadership. Without light there is only dark. We can’t make it in the dark. We need things to illuminate our way.
Back in those Roman days towns or just houses were built on hills. At night they were lit up. People who were
traveling followed the light to get where they needed to go. Good leaders don’t spend all day talking about how dark things are. You illuminate things to see how to make the right decisions. Ronald Reagan once said, “If you can’t make me see the light, make me feel the heat.”
Inspirational leadership is about setting a vision and then getting both those you supervise and those who supervise you to buy into that vision. But remember, everyone is looking for results. In a football game, players are all dressed up and ready to play. They come out and get into a huddle.
Thousands of fans don’t mind looking at players all hunched over doing nothing for a minute. However, they expect some results from that planning time. You can look good but, if you don’t make an impact, all that effort was a waste of time.
How do real leaders get people to follow them? It’s all about their priorities. If your priority is to build yourself up, you will not be very successful. Those leaders that have the priority to build up the team, involve others and set your board up for success usually prosper. They prosper, their clubs prosper, and their staff prospers. It is called a beneficial act where others get the credit.
Leadership can also be about stepping outside your comfort zone. Thomas Aquinas once said, “If the highest aim of a captain were to preserve the ship, he would keep it in port forever.” In my last article (Improving Your Vision, Avoiding the Titanic Experience? BoardRoom magazine, September/October 2018), I talked about figuring out what members want before they even realize it themselves.
Staying on top of the industry and devising creative solutions for day-to-day problems will keep the club ahead of their competition. However, many times it comes down to capital investment and getting the leaders and members to buy in. If you have a clear and positive vision you have a better chance for success. Remember, as Stephen Covey says, “Leadership is a choice, not a position.” BR
Many thanks to Dr. Tony Evans for his insights I used in this article.
LAW & LEGISLATION
ROBYN STOWELL
Robyn Nordin Stowell is a partner in the law firm of Sherman & Howard L.L.C. in Scottsdale, Arizona. Robyn may be reached at (480) 624-2736 or by email at rstowell@shermanhoward.com.
Let This Be the Year Your Club Is Truly More Private
Seriously, I’ve been saying this for years. If you are a private club, then be private. If you don’t want to be private, then you will live with the consequences.
After 2008, many clubs had to do what they had to do. But things are better now for most clubs, and now is the time to tighten up the rules and focus on the members.
Why? Because whether the club is “purely private” or a “public accommodations” really does matter.
Because if the GM does not understand (and let’s face it, many do not) what the actual bottom line differences are between these two, then the board likely will not either.
Because public accommodations are subject to discrimination laws, ADA and other laws and rules that many (not all – i.e., NYC) clubs avoid.
Because a slow waive of politicians and governmental employees – certainly well-meaning – are looking at all the suspect classes and wondering if they are being welcomed and treated fairly in all the businesses in that government’s jurisdiction. They are looking at clubs that are all male or all female, that offer preferred tee times or facilities separated by gender, that allow special events that are
the carpet, roof and other facilities, and that day’s share of insurance, the time involved by the chef, accounting, and sometimes the GM and other staff, or do they focus on the cost of rubber chicken or the “gross” they bring in?
Because we all know many people who are not actually club members but who know how to get a trial membership here and a summer membership there and a special tournament somewhere else, so they never really “buy in” and contribute to the club – and we allow and encourage that when we open the club to non-member or public events.
Because a club that is tax exempt under 501(c)(7) is exempt from certain legal requirements and can use that status (and its related purely private status) as a defense against certain discrimination claims, and it can lose that ability once it is no longer private.
Because I continually tell clubs to make their websites more private, pulling behind the member password all information that is not relevant to the public (staff contact, menus, pricing, upcoming events) and now we are seeing enforcement action against clubs whose websites are not ADA compliant.
Because I continually tell clubs to make their websites more private, pulling behind the member password all information that is not relevant to the public (staff contact, menus, pricing, upcoming events) and now we are seeing enforcement action against clubs whose websites are not ADA compliant.
“sponsored” but not really “member” events. And they will continue looking. The fact is, many clubs look a lot like public accommodations.
Because said governmental agencies can fine the club, jeopardize its tax-exempt status, shut down some of its traditions, force it to be open to the public, or try to weigh in on and modify its member selection criteria.
Why? Because your members pay for the club’s “overhead” and often the non-member events do not. For example, when catering staff budgets a non-member wedding, do they factor in that day’s share of wear and tear on
Just as some ADA lawyers have been known to troll for a mall or restaurant that missed an ADA requirement by an inch and then use a token person with a handicap to sue over it, there are now ADA lawyers trolling websites for the same purpose and some are looking at clubs. Beyond that, pushing more content behind the member password may help somewhat with cyber risks.
Seriously, please humor me and at least consider some of these issues. I promise, even with my sometimes-lighthearted tone, it is a legal issue and your club may be in great jeopardy if you are not taking these issues seriously. BR
DAVE DOHERTY
Dave Doherty is president/CEO and founder of the International Sports Turf Research Center, Inc. (ISTRC) and holds three patents regarding the testing of sand and soil basedgreens. He can be reached at (913) 706-6635 or via e-mail: daveistrc@hotmail.com Web page: www.istrc.com
Tight Money and Course Management Clubs with a Plan Saved Money
WOW!!!! What a roller coaster ride.
During the last couple of months, I’ve given eight seminars and visited courses from high-end private to low-end daily fee.
I’ve attended board meetings where the conversation was as up and down as the stock market. I have also attended board meetings that were calmly and professionally run in which each member had sufficient information to ask intelligent questions and productive conversation followed.
In those meetings that were productive, the board, the general manager and the golf course superintendent were all on the same page with adequate information to make intelligent and rational decisions without panic.
What the economic and golf recession has forced us to do both at home and at our courses is to take a hard look at where we
spend our money and what our return on investment is going to be.
Many courses across the country are experiencing a downturn in rounds played and in memberships. However, there are also a fairly healthy percentage of courses that are experiencing an upturn in rounds played and in memberships.
Six courses that I am familiar with and have visited over the last few months come to mind – three public/county courses and three private courses. Two of these public/county courses have seen a substantial decrease in rounds played and have announced an increase in daily fees for next year.
The other public course has seen an increase in rounds played and has increased the budget for maintenance of the course for next year [no increase in daily fees]. All three service the same general area.
Of the three private courses, one has seen an increase in rounds played and revenues, and has a waiting list for new members, the other two are working on plans to hold on to current members and attract new members while reducing the maintenance budget and staff. I wish them luck.
What does each of the successful clubs/ courses have in common? They each started on a plan within the last few years to find out and understand the physical condition of the course and what could be done to improve the playing conditions based on science.
Each member of each of these club’s maintenance committees understood what needed to be done and why. All three of the successful courses now have a better product to offer to the golfing community and will survive this golf recession.
Those clubs without a plan and the knowledge to start a program to improve and maintain their course will always be finger pointing and replacing key employees hoping for a miracle and wasting dollars. In today’s world of science, coupled with common sense, this is a waste. If you don’t have a plan to improve your greens, start one now based on the science of physical properties.
What the economic and golf recession has forced us to do both at home and at our courses is to take a hard look at where we spend our money and what our return on investment is going to be.
Over the last several months different clubs have been surveyed regarding dollar savings for chemicals. Golf courses that have implemented a maintenance plan resulting in balanced physical properties that are compatible with their micro-climate and that have also taken steps to vent and oxygenate their greens were surveyed.
The response was overwhelming for substantial dollar savings in chemicals (mainlyfertilizer and fungicides). Most responded that they had realized a 25 to 50 percent reduction in chemical usage.
Whether it’s 25 or 50 percent, the savings are substantial. Balanced physical properties = healthy greens = less use of chemicals. BR
Made from European porcelain of the finest quality and craftsmanship, our classic Raio collection is both timeless and stylish. Elegantly paired with our award-winning French Leaf flatware, this duet makes any table flawless.
RAIO
Dinnerware
MEMBERSHIP COMMITTEE
MIKE PHELPS
Mike Phelps is principal and co-founder of Pipeline, a marketing agency for membership clubs, residential communities and unique experiences. www.pipeline-inc.com.
Breadcrumbs Otherwise Known as Reading Between the Lines
Great brands put it there – between the lines – for you to figure out on your own.
It’s because great brands know that people will doubt you by nature. They will doubt your bold claims. They will doubt your website and your emails. They will doubt your advertising. And yes, they will even doubt your testimonials. But if you can tempt those people to follow you to where they can discover that truth on their own, you will have convinced them to the core.
The secret is making them hear what you didn’t say. You’ve got to let them find the treasure on their own. It’s okay to leave a trail of breadcrumbs. Just don’t be too obvious about it. When the crumbs are too big or too close together, people feel manipulated.
Here’s a test: Go to your club’s website and complete the membership inquiry form. Now, pay close attention to how your club representative responds to your inquiry. Are they leaving a trail of breadcrumbs, or are they responding with every possible bit of information down to the tiniest details, as if to say “Hi, I know we just met, but I thought you might like to know that our weekday tennis guest fee is $17.”
There is a much better way to nurture leads…and it involves breadcrumbs.
We tend to blow it when it comes to new member onboarding too. Just ask one of your newest members what they thought of the onboarding process at your club (hopefully they don’t ask you what that is). They’ll probably say they were invited to an orientation where they got bombarded with a ton of information that no reasonable human could possibly absorb all at once. Yet, onboarding is easily the single biggest opportunity to increase member retention and recruitment (new members are the largest source of referrals). Poof.
I promise, there is a better way to do new member onboarding (Hint: it involves breadcrumbs.)
I don’t want you to think that we vendors have it figured out either…far from it. Just listen to how we constantly tell you how great we think we are. What’s that, you didn’t ask…oh that’s okay, we’re more than happy to tell you anyways.
In fact, just go ahead and visit/follow/subscribe/tag/comment/like/ share and let us know how great you think we are at telling you how great we think we are. Now…look at all those likes.
Are you reading between the lines yet? Here are a few things to consider:
1. Never claim to be honest. Just say things that only an honest person would say. Having followed the breadcrumbs, the listener will then conclude, “Wow. This person is really honest.”
2. Never claim to be an expert. Just provide value in a way that only an expert could. The recipient will then conclude, “Wow. This person knows their stuff.”
3. Never claim to be the best. Just describe the little differences that make your club distinct. The reader will then conclude, “Wow. This place is better than I thought.”
4. Never claim to be exclusive. Just discuss the types of people who are naturally attracted to your club, and why. The listener will then conclude, “Wow. This place must be in high demand.”
5. Never claim to be definitive. Just offer relevant details in the proper sequence and proportion. The recipient will then conclude, “Wow. This person cares about what I care about.”
6. Never claim to be intelligent. Just listen intently and nod your head as though you understand. The speaker will then conclude, “Wow. This person really gets it.”
7. Actually, come to think of it, you should never claim anything at all. Just demonstrate the quality you want to be known for.
In other words, shut up and do the thing. Don’t claim things. Demonstrate them.
I’m talking about marketing, of course. But I think the same advice also goes for pretty much every other situation in life.
Did you notice the anomaly in point six, the one about intelligence? Did you notice what was missing? Did you hear what I did not say?
I did not tell you to, “Just say something that only an intelligent person would say.” Because that NEVER works. Trying to sound intelligent just makes you look like a pompous ass. But you already knew that. Thanks for listening. BR
MEMBERSHIP COMMITTEE
STEVE GRAVES
Steve Graves is president of Creative Golf Marketing. The company specializes in membership development strategies to enhance membership growth, membership retention, and financial success for its private club clients. Contact CGM via email at www.CreativeGolfMarketing.com or (800) 526-8794.
Experience the ‘Before and After’ Effect Now
This is the time of year when we’ve read and heard about all of the resolutions we should be making and how this is the perfect opportunity to start fresh. It’s good to have goals, no matter what size they are. Unfortunately, some goals are harder to attain (or keep) than others.
This article isn’t about that exactly. The experience we’re going to highlight is the ‘before and after effect’ that we all experience after a goal or project is completed.
A good before and after story always resonates with those who have put off a task or project for a while (maybe even last year’s club resolution). We’ve all read some amazing stories of clubs who have completed such a perfect before and after, where it is even highlighted and written up in a number of publications, including this one.
When it comes to accomplishing your goals or a project, there is always something standing in your way. Excuses can range from: not having enough time; not having the financial resources; not knowing how to accomplish the task; not having enough staff or resources, or just the general disdain to jump in and tackle such a task. Therefore, we become used to our daily routine and become satisfied with what we have in front of us every day.
get about the extraordinary joy and pride of accomplishment afterwards. This thinking should be reversed and focused on the absolute joy of and pride of accomplishment.
Afterwards, we surpass the worries that commonly preoccupied our opposition and feel a sense of pride, elation or, albeit shortly, serenity in our accomplishment. Forget about that next task for a bit (‘cause we know there’s always another project waiting) and acknowledge that you have enhanced your club to the next level.
Now, here comes the tough part though. Once you cross the finish line on one goal, the ‘before and after effect’ is no longer is there to motivate you.
We commonly start to think about all the work that will be needed for the next important task, where we find ourselves
Once you cross the finish line on one goal, the ‘before and after effect’ is no longer is there to motivate you. We commonly start to think about all the work that will be needed for the next important task, where we find ourselves reverting to the earlier thinking of the difficult of the dreaded implementation efforts necessary to accomplish the goal.
Every club across the United States has at least one of the following scenarios:
• “Our board of directors is not aware of the best practices of the industry and how to use that information to benefit the club.”
• “Our membership classifications have been set for the past 10 years and don’t reflect the upcoming generation of new prospective members.”
• “Our membership isn’t engaged and willing to invite their friends.”
• “Our marketing collaterals and website don’t tell our story and echo the brand and prestige of our club.”
• “Our club hasn’t realized the importance of technology and utilizing it to our best interests.”
Each of these questions might stir up some dread or uneasiness. These may have been talking points for months, but no one has been willing to think of the benefits. We focus the vast majority of our thinking on implementing, administrating, and executing all of the steps involved and for-
reverting to the earlier thinking of the difficult of the dreaded implementation efforts necessary to accomplish the goal.
We said that we weren’t going to talk about goals, specifically, and what each club might be struggling with. And we’re not. We’re here to remind each member of the clubs’ leadership of their responsibility of raising the club to a higher and higher standard.
We’re here to focus on the “jubilation” each of us experiences afterwards. The sooner you get started, the sooner you will experience the power of the ‘before and after effect.’ Now is the time to push forward. BR
DISCOVERTROON PRIVÉ
DISCOVERTROON PRIVÉ
Your Club. Your Culture. Our Resources.
Your Club. Your Culture. Our Resources.
No two private clubs are alike, and at Troon Privé,® we want to help you keep it that way. Of course, that requires a different approach from other management companies. As Troon’s private club division, we don’t own or lease clubs—we’re a proven third-party professional services organization that provides best-inclass systems, processes and resources to the member-owned, self-managed private clubs we serve. To learn more about Troon Privè, contact the team at 480.606.1000, or visit TroonPrive.com.
No two private clubs are alike, and at Troon Privé,® we want to help you keep it that way. Of course, that requires a different approach from other management companies. As Troon’s private club division, we don’t own or lease clubs—we’re a proven third-party professional services organization that provides best-inclass systems, processes and resources to the member-owned, self-managed private clubs we serve. To learn more about Troon Privè, contact the team at 480.606.1000, or visit TroonPrive.com.
Clockwise from top: FireRock Country Club, Fountain Hills, Arizona; The Club at Cordillera, Edwards, Colorado; St. James Plantation, Southport, North Carolina; Cimarron Hills Golf & Country Club, Georgetown, Texas.
Clockwise from top: Seven Canyons, Sedona, Arizona; The Club at Cordillera, Edwards, Colorado; El Macero Country Club, El Macero, California; Cimarron Hills Golf & Country Club, Georgetown, Texas
Clockwise FireRock Country Club, Fountain Hills, Arizona; The Club at Cordillera, Edwards, Colorado; St. James Plantation, Southport, North Carolina; Cimarron Hills Golf & Country Club, Georgetown, Texas.
EXECUTIVE COMMITTEE
GORDON WELCH
Gordon Welch is the president of the Association of Private Club Directors (APCD), the only association representing the club’s board. He can be reached at gordon@apcd.com or by calling (949) 376-8889.
You’re a Committee Chair – Now What?
You have been elected to your board and it suddenly hits you –what am I supposed to do? To help new board members, here are eight things to do as you begin your new role.
Review your job description: As a new volunteer leader of your club, the committee chair is responsible for leading your group in the oversight and support responsibilities that are critical to good governance.
The committee chair must be knowledgeable about the club – its mission, vision, values, programs, services, members and resources – and understand its place in the larger framework of the club. The chair’s role is usually defined in the bylaws, but a separate job description should outline your duties in more detail.
Make time: As you undoubtedly know, being the committee chair is a considerable time commitment. However, it should not consume your life. Be cognizant of how much time you can commit to the club and then achieve and maintain a balance.
Consider creating a timetable: Using a timetable will help you organize your time and manage expected tasks and responsibilities. The timetable can be divided into monthly, quarterly and periodic tasks. Adding committee, board meetings and other club events to the timetable will help you visualize the time commitment and its high and low at various times of the year. The list of tasks need not be all-inclusive because it will change as the committee responds strategically to needs and opportunities.
Meet with the GM/COO to discuss:
• Their expectations of the committee chair and the working relationship, including professional boundaries.
• GM/COO vision for the organization
• Their personal goals as GM/COO
• The status of the strategic plan or framework and how it will affect your committee work
• Any trends affecting the club
• Challenges and opportunities, and
• Club’s financial health
Meet with the former committee chair to discuss:
• Time commitment
• Any issues that arose during their tenure
• Unfinished board business
• Their working relationship with the chief executive, board members and membership
Reach out to other board members to discover:
• Why they joined the board
• How their board service is going
• Board meeting effectiveness – how can meetings be improved?
• Secure their support
• Any tips on how to better serve at the board level
Strengthen your communication and leadership skills: Strong communication skills are essential to your new role as a committee chair, who facilitates meetings and represents the committee in board meetings.
We often assume that anyone who becomes a committee chair is already a good communicator, but that is not necessarily the case. Be prepared to lead the discussion and make a report to the board. Remember – committee chairs do not re-hash the committee meeting in front of the board. Your role is to make a brief report and update on appointed tasks.
Set goals for your committee: A good way to help you, and, in turn, the board set goals, is to assess the committee’s current performance. By doing so, you will be able to identify strengths and weaknesses and then set priorities and goals. It will help you determine where to focus your energies as you begin your tenure.
Remember, the role of club committees is to provide a sounding board for members to participate in the club. The committees provide opportunities for management and club leaders to hear from the members regarding their needs and expectations. The committee does not provide any direction to the GM/COO or staff. Only the board provides direction to the staff.
Enjoy your new role as a board committee chair! You will do a great job! BR
Orient and Develop your Board of Directors
Replace emotions with facts!
BoardRoom Institute gives your club board access to top experts in the private club industry.
Hundreds of years of combined experience and hundreds of thousands of dollars worth of information in over 45 educational videos.
BOARD AND CLUB BENEFITS
• 24/7 access
• Affordable
• Prevent club lawsuits
• Accountability
GM BENEFITS
• Reduce micromanagement
• Collaborative governance
• Creates a shared playbook
Until now, almost all board member education rested squarely on the shoulders of the GM/COO. This was, and continues to be, a tremendous responsibility. The good news is that this is no longer the case and help is available - The Association of Private Club Directors is here to help you.
Robert Sereci, GM/COO Medinah Country Club, Medinah IL
John G. Fornaro BoardRoom magazine
Kevin Reilly PBMares
Jim Fedigan Jonas Club Software
Randy Addison Addison Law
Gordon Welch APCD
Rhett Evans GCSAA
Jim Butler Club Benchmarking
Michael Scimo President, Medinah CC
Tarun Kapoor Kapoor & Kapoor
Jerry McCoy Clubwise Consulting
Rick Coyne ClubMark
Phil Harvey Venture Insurance Programs
John Embree USPTA
Robert Sereci GM/COO, Medinah CC
Gregg Patterson Tribal Magic
EXECUTIVE COMMITTEE
Let’s play Jeopardy!
Answer: Zero
Question: How many club members have adopted the widely accepted club industry governance model (The Social Board Model) in their own business?
Of course, many club members haven’t adopted the industry governance (Social Board) model, and rightly they shouldn’t. The majority of club members have already experienced a level of success in the business world, and none, for even a minute, have ever even considered the possibility of adopting this system of governance in their own business.
The most interesting question, why not?
The good news is that the answer to this question is simple, logical and definable.
The principals of a successful business model are readily found in corporate best practices and business literature around the world and can also be found in the Diablo Country Club member-approved Corporate Hybrid Governance Model, which includes the following underpinnings of quality governance.
pionship, owns a restaurant, played golf/tennis/squash in college, or is retired and has the time.
Although these represent the qualities of a great member, they have little to do with one’s qualifications as a DIRECTOR and FIDUCIARY. Is a member qualified because they are active users of the club as “good customers?”
Follow the logic… would you consider a patient who has undergone several root canals as qualified to perform one ON YOU, or would you seek a qualified dental professional? Seems silly, but we see this rationale employed in clubs every day. Why do members accept this model in their club since they would not in their businesses?
Manager operates: Most club directors and industry professionals would agree with the following statement: The board sets the strategy and policy and the manager operates/implements. Although we’ve heard this for years, the concept no longer applies to modern governance and corporate best practices.
The term micromanagement and governance go hand and hand. We would venture to guess that micromanagement in the context of club governance and corporate governance has been discussed, debated and studied more than any other single topic. Yet, most clubs hold board meetings not less than once monthly and require directors to chair a committee that also meets monthly. All told, 24 meetings a year!
How can you possibly fill 24 agendas with meaningful and strategic topics? It’s worse yet, if you have 12 committees at your club there are up to 156 meetings a year that require preparation, resources, and follow up. No time left to be strategic!
Qualifications: Who is qualified to serve on your board? It is common for the Social Board Model qualifications to include member tenure, participation in club events, well known, well liked, committee service, won the club cham-
Boards in clubs are transitory. Strategy and foundational principals (mission, vision, and values) are not transitory. The club professional (CEO/COO/GM) is an important contributor and shaper of foundational principals and must
STEVE GREEN
DAVID MACKESEY
CORDEIRO
also be considered a keeper and steward of same alongside the transitory board members.
Again, ask any member whether in their own business they would allow a person (president) or group (board) to change their core businesses strategy and principals every year or two. If they did, they would soon be out of business. Why do members accept this model in their club, since they would not in their business?
Continuity: Every person who has run a company or an organization of any consequence knows the value of continuity. In clubs with a Social Board, power meanders and continuity is fleeting.
The configuration varies from club to club, but a common model is one-third of the board transitions annually. By definition, one-third of the board is brand new, onethird has one year under their belt and the final one-third is 12 months from leaving (lame ducks). Hardly conducive to continuity.
Ask a member of your club, any member, in their business, if they would change the highest ranking official every year? Every two years? If they did either, how long would they be in business? Why do members accept this model in their club, since they would not in their business?
Micromanagement: The term micromanagement and governance go hand and hand. We would venture to guess that micromanagement in the context of club governance and corporate governance has been discussed, debated and studied more than any other single topic.
Yet, most clubs hold board meetings not less than once monthly and require directors to chair a committee that also meets monthly. All told, 24 meetings a year! How can you possibly fill 24 agendas with meaningful and strategic topics?
It’s worse yet, if you have 12 committees at your club there are up to 156 meetings a year that require preparation, resources, and follow up. No time left to be strategic!
In essence, you are inviting micromanagement. You are begging them to count how many free peanuts are given away in the locker room, argue about how long or short the players’ skirt or shorts should be (for the 200th time) and to revisit the age-old and dilemma of… “Should the rakes go inside or outside of the bunkers” (for 2,000th time).
You can’t possibly be strategic when you are forced to stay in the weeds? With the exception of treasurer, directors should not chair committees. This keeps the director strategic while opening opportunities for meaningful service to the membership at large.
We seek strategic governance but continue governing with a model that can’t produce that strategic result. Insanity indeed! Seems simple and silly, but clubs have been be-
having this way for a century. Past practice is past practice, not best practice. Why do members accept this model in their club, since they would not in their business?
The information stands as an introduction to the primary tenets of the Corporate Hybrid Governance Model. It’s not meant to be exhaustive, but hopefully it will cause readers to reflect on how they govern at their club and ask… “Is there a better way?”
Perhaps this will open the dialogue and present an opportunity for improvement at your club. Diablo Country Club was featured in Club Management Magazine in 1986 as one of the first clubs to adopt the “GM” concept.
We won’t speculate as to why the membership at Diablo Country Club, a club founded over a century ago, was the first to adopt the GM concept and, yet again, acknowledged the need to continue evolving and thus overwhelming approved a bylaws’ revision to modernize governance and adopt The Corporate Hybrid Governance Model?
The thoughtful Diablo Country Club members seem to be ahead of the curve, and we can tell you that the logic of the Corporate Hybrid Model resonated and has been transformational for our family of members and family of employees.
It has been the foundation which has led to a comprehensive strategic plan and master plan that will guide the club’s ongoing success for the next 100 years.
The club industry has a talented pool of competent executives with a wealth of experience and the finest professional development education in the hospitality industry through CMAA.
These clubs are comprised of club members who are the best and brightest in their respective industries and professions. In order to maximize this collective talent and expertise on behalf of your membership and family of employees, consider adopting a modern governance structure and corporate best practices that affords the same logical, definable and successful methods adopted by your members in their own businesses, and successful organizations around the world. BR
Steve Green is a Diablo Country Club member, chair of the strategic planning committee. He is also president, Chevron North America Exploration and Production.
David Mackesey is a Diablo Country Club member, vice-chair, strategic planning committee and retired president, The Wine Group, Inc.
Frank Cordeiro, CCM is chief operating officer, Diablo Country Club and can be reached via email: frankc@diablocc.org
Previewing CMAA’s 2019 World Conference See You in Nashville!
BY BOBBY CRIFASI AND MICHAEL BABB
Nashville, TN, known far and wide as Music City, is calling!
An exhilarating destination for music lovers, foodies and fans of history, architecture, nightlife and just plain fun, Nashville sets the stage for the Club Management Association of America’s 2019 World Conference and Club Business Expo.
It’s a great chance to spend five days combining a leading-edge educational program and unparalleled professional development with the utterly original attractions and energy of a host city that’s bursting with opportunity.
The general and business sessions will feature the father-son duo from the First Family of Football, Archie and Cooper Manning; a combat veteran, Fighter Squadron Commander, White House Fellow and Advisor, the first woman Thunderbird Pilot, Colonel Nicole Malachowski, and former CEO of Flywheel Sports, former president of Equinox, and former global president of Gatorade, Sarah Robb O’Hagan
Other notable presenters will include Wawa’s Lead Goose Chris Gheysens, the Biltmore Center for Professional Development’s Ann Ashley, the Bell Leadership Institute’s Dr. Gerald Bell, and Chick-fil-A’s Dee Ann Turner (retired).
In addition to robust educational programming with sessions on hiring, marketing, food and beverage, finance, member relations, wellness, and more, attendees will gain access to exclusive event features, including:
• Certification advancing opportunities – 70 valuable education sessions that offer credits leading toward Certified Club Manager (CCM) eligibility.
• Club Business Expo – an innovative two-day showcase highlighting the products and services of more than 250 exhibitors spanning the full industry supply chain and featuring the all-new Wellness Pavilion.
• Pre-conference opportunities – multiple- and half-day workshops offering immersive experiences on select club management topics.
• Networking events – a wide variety of social functions, including a unique Nashville networking event at the famed Ryman Auditorium, the Career Opportunities & Mentoring Showcase, a first-time conference attendee gathering, fitness activities, and the new awards breakfast featuring Olympic Champion Scott Hamilton, designed to help build connections with like-minded club leaders and staff.
• Member communities – specialized groups that connect CMAA members with similar interests and expertise for networking, career building, and camaraderie, such as YoPros, International Wine Society, Women in Club Management and Yacht Club Managers.
We look forward to seeing you in Nashville! BR
Bobby Crifasi, CCM, CCE, CPA, of the New Orleans Country Club in New Orleans, LA, is the 2018 President of CMAA, and Michael Babb of Memphis Country Club, in Memphis, TN, serves as the local conference committee representative. For more information on the event, please visit www. cmaa.org/conference.
To Elevate the Standards of Tennis-Teaching Professionals and Coaches
Is your teaching pro USPTA-Certified?
USPTA Professionals...
Provide the highest level of tennis-teaching instruction and programming.
Provide worthwhile teaching experiences that will increase tennis participation.
Have the training and education necessary to grow the sport of tennis within your community and become an integral part of your management team.
TENNIS COMMITTEE
DAVE MOYER
Dave Moyer is the director of tennis at The Country Club at DC Ranch and can be reached at dmoyer@ccdcranch.com
Hiring the Right Leader for Your Tennis Program
A tennis program remains one of the key programs to having a well-rounded country club. Yet when it comes to hiring the right person to lead that program, search committees and/or management teams come up short because they don’t have a clear understanding of what is important when searching for a director of tennis (DOT).
The right leader can take a program from average to great fairly quickly, giving your club an amenity that will keep current members happy and bring in new members in the future.
Here are what I believe are the 10 qualities your board of directors or manager should look for in a director of tennis:
1. Are they a true tennis professional? When beginning your search, concentrate on those candidates that view what they do as a career and not as a way to get paid for a game that they love to play. Do they show up for the interview in a coat and tie and do they have a professional presentation? What they are able to do off the court will be the difference in taking your program to the next level.
2. Are they a certified USPTA professional? I mention the USPTA because it may soon be the only tennis teaching organization accredited by the USTA and the standards of practice in the future will only increase as the USPTA continues to collaborate with the USTA. DOT candidates must value continuing education and being involved in the tennis industry.
3. Relationship skills – Put your candidate in front of a group. Do they walk up to people and introduce themselves or let people come to them? The club business is all about building relationships and if they can’t connect it will be very difficult to build a strong tennis program.
4. Stability in past employment - It is important that you find someone that you know will be at your club for at least five years, preferably 10 years, especially if you are trying to build a tennis program.
5. Programming skills – A good DOT candidate must be able to present an idea of what their program will look like in the way of events, drills, tournaments, etc. They need to have a plan on how to get members involved. Most importantly, they need to be able to have fun, creative and not be afraid to take chances.
6. A strong work ethic - This can be a little tougher to determine but you can ask pointed questions about what a typical work week looks like to them, or even questions as broad as what it takes to build a tennis program. This isn’t an easy job and can be especially long hours when building a program.
7. Have an agenda-free search committee – I have been involved in searches where each person on the committee has a specific agenda that they are looking for, which in turn eliminates many qualified candidates. Someone may have a highlevel junior and only want a DOT that will be able to work with their child while ignoring all other aspects of the program. Or another member may like the pro at the club down the street. Don’t limit your candidate pool with agendas.
8. Teaching skills – Every interview should include a group lesson and a private lesson to see how that person does with both individuals and in a group setting.
9. Business skills/entrepreneurial – I have always felt that the best pros have an entrepreneurial spirit to them. Today’s DOT needs to be able to hire good people and manage a staff; put together and stick to a budget, manage merchandise, have technological skills and more. A great DOT will run their department like it is their own business!
10. Don’t focus entirely on playing background - One of the biggest mistakes I see search committees make is getting caught up in a candidate’s playing career. Just because someone played on the tour at one point doesn’t make them a good leader of your program. BR
EXECUTIVE COMMITTEE
DR. RONALD F. CICHY
Dr. Ronald F Cichy, O.M. is Professor, The School of Hospitality Business, Michigan State University
Challenges, Burning High Priority Issues, Opportunities and Problems
“What are the challenges, burning high priority issues, opportunities, and problems that you are seeing at your club?”
Recently club management executives attending BMI III, were asked to identify questions as they perceived them to be affecting four categories (that is, their perceptions in each of these categories) in their clubs:
• affecting the CMAA BMI III attendees and their GMs/COOs
• affecting the board of directors and committee members
• affecting member-owners
• affecting staff members
Perception is reality, it has been said many times. And the perceptions reflected in our poll are a snapshot at that very moment (in this case, October 2018). Those who participated in our poll were executives at member-owned clubs (89 percent); specifically, golf/country clubs (78 percent); participants were an average of 6.7 years at the present club, and an average of 13.4 years (range = 1.5 to 30 years) in the club industry.
One section of the poll asked their perceptions of the challenges, burning high priority issues, opportunities, and problems from the perspectives of the board of directors and committee members. In this category are:
equity clubs. CAPEX/PIP execution is ongoing; which project is next?
Membership: Board members continue to discuss ways to attract new members and retain existing members. Growing the number of members when the club is underutilized is a different challenge than retaining membership when the club is at capacity.
Boards must know the various membership classifications, continue to try to draw more diversity in new members and add younger members with families. Some pointed out that the old guard may want to retain control, however, the longevity of the club is very much dependent on younger members and their participation and engagement.
Board of directors: The third most mentioned was the board, itself. Board members must continue to enhance their knowledge about their roles. The BoardRoom magazine is an excellent resource for the board. Encourage them to read and discuss the applicable topics with the club’s management and volunteer leaders. Board knowledge leads to continuity of focus when board leadership changes.
There were some work-ons for the board members to consider. The poll noted that some boards are not diverse. Rather, board members simply encourage their friends to join the board, ensuring like-minded thought. Indecision about bringing on a new GM/COO, one who is a good fit, was mentioned by several.
CAPEX/PIP: Capital expenditures (CAPEX) and property improvement plans (PIP) top the list for boards of directors by the clubs in the poll. These range in scope from redesigning the dining room to revitalizing the main lounge and terrace to updating the greens.
One concern voiced by several is the necessary ability to continue to provide products and services to members during the closure of facilities and spaces for rehab. Funding for CAPEX/PIP is of concern to the board. Spending reserve (capital) funds typically requires board approval in
Other concerns: The remaining issues identified included accounting/finance. One comment was about the treasurer “with no clue (as to) what is going on.” Dues assessments and increases – when and how much were brought up. The long-range plan was identified as one way to build continuity of strategic direction. Today’s board is creating a strategic direction for tomorrow’s volunteer leaders through today’s strategic plan.
Private club boards of directors help create value for other members. They have a direct effect on the morale of the members and the culture of the club. They are fiduciaries of their club, and through their actions and their words, boards of directors lead. BR
Great sta uniforms have the power to boost your brand and your sta moral. at’s where High-End Uniforms comes in. For 20 years, we’ve lived by the motto “Presentation is Everything” (and we have awards to show for it.) But we also understand that partnership with our customers makes it all possible.
Connect with us for an inital, no-obligation design consultation. You’ll share your business’s story and uniform needs with one of our experts, and based on your chat, we’ll assemble an array of unique apparel options for you to consider.
us on line to see our c ollection. (707) 746-7011
OR MS.COM
Tax Status
The Grass Is Not Always Greener
While the economy has improved, many clubs still struggle to bring in new members and to get existing members to spend what they did in the past.
Because there are still too many clubs, many, other than the very exclusive, are just looking to survive. So many opportunities exist for our entertainment dollars that a club has to fight just to maintain its fair share.
Costs, particularly wages and employee benefits, continue to rise. The vibrant economy makes it more difficult to find and keep good employees. In discussion with managers around the country, this clearly is the biggest problem they face.
Clubs compete in a marketplace that continues to change and not always to the benefit of clubs. The marginal clubs are looking to cut expenses and defer capital expenditures, but you can only take this so far, particularly when the club down the street is making improvements. In reality, a club needs more members and more spending by existing members.
The board wants to fund operations without raising dues sufficiently. This is shortsighted. Clubs are in the dues business. However, boards see the increased use of the club by non-members or by providing non-traditional activities as a solution to all their problems.
Unfortunately, the use of the club by non-members does not provide the needed revenue and may affect the usage of the club by members. Convincing boards of this reality is difficult and as a result, non-member income approaches or exceeds the limits established for tax-exempt clubs.
At this point, a club may consider giving up its tax-exempt status. Adding to the debate are consultants that encourage the giving up of tax-exempt status because clubs do not make any money anyway or privacy and exclusivity is not important.
It is critical that a club not make a decision that has a long-term impact, based on a short-term crisis. Before proceeding, consider alternatives! Do not change status on what you think might be the advantages. Investigate thoroughly. Taxable status is not a panacea. It has its own set of problems and limitations. Among the benefits of tax exemption:
• No tax on net member income – Dues, initiation fees and special assessments all fall within this category.
• It is possible to defer the tax on the capital gains from the sale of some club property provided certain conditions exists.
• Net income from the sale of goods to non-members may be reduced through the allocation of certain overhead costs.
For a taxable club, initiation fees and special assessments are usually taxable. Dues and payments for services are always subject to tax. While a club may not have a profit from operations, most will have a profit when dues, initiation fees and special assessments are added. If not, the club is headed into financial difficulty and potential bankruptcy.
There may be a tax cost on conversion and it is unclear whether a club can make this change unilaterally since it had to apply to get the status in the first place.
Records must be kept on non-member use of a club to ensure that permissible levels of use are not exceeded. Failure to keep adequate records could result in the income being treated as non-member. A tax-exempt club is limited to the amount of income it may generate from non-members.
The paperwork burden does not disappear for clubs switching to taxable status. For a member-owned taxable club, records must substantiate which expenses relate to member and which to non-member functions. The deductibility of certain expenses arising from furnishing services to members is limited to member income. Deductions that exceed member income may be carried forward to subsequent years. These limitations can result in higher income than expected.
Carefully review all state laws before changing taxable status. States reserve the right to tax entities engaged in business in the state in a variety of ways. Many states provide exemptions from taxes to organizations that qualify as federally-exempt organizations. Exemptions often cover more than just state and local income taxes.
CULINARY & CATERING
LYNNE LAFOND DELUCA
Lynne LaFond DeLuca, executive director of the Association of Club Catering Professionals (ACCP). The Association of Club Catering Professionals National Conference will be held August 19-21, 2018 in Napa Valley, CA. Register at www.TheACCP.com. You can also contact Lynne at Lynne@TheACCP.com
Brand New Year, Brand New Start … Same Ol’ Events?
“What’s new with you? Anything new in the event world?”, a clubhouse manager asked me during a recent conversation.
My eyes lit up! “Yes!”, I replied, and excitedly began telling him about all the fun, dynamic event ideas I had, and the new creative partners (vendors) I’ve been working with to build relationships in order to put fresh and exciting event ideas and resources in front of the clubs for easy access to the best in the business.
My excitement level started to fade as I started asking him about the resources he used in the club.
To my excitement about “interactive entertainment”, he replied: “Oh, we use the same DJ for every member event. They love him.”
Designing events with the member experience in mind, he responded. “We just use house linens for the events. It’s in the budget.”
Insta-worthy, trendy, fresh, mouth-watering ingredients for menus and presentation? “Oh, our members would kill us if we changed the menus. We stick to the basics.”
Since we are still in the beginning of the year, there is plenty of time to make changes now to improve your events for the upcoming year. Here is a “critical items” checklist to keep in mind when thinking about the resources you may need to make it happen:
• Team brainstorming sessions to find inspiration and ideas for events
• P & L (Profit and Loss) statements for every member event > Budget for entertainment, décor and surprises!
• Marketing to create awareness and excitement among members > Décor and in-club displays to promote member events
• Education to keep your team inspired with new ideas > Outside-the club networking events, certifications, ACCP National Conference!
• Technology update to improve efficiency and time management so you have more time to plan better events and execute perfectly > Catering software, room diagram software, iPads, etc.
• Additional inventory – Do you need a new dancefloor? Chairs? Décor? etc.?
I was bored to tears and about to fall asleep just thinking about the events at his club. If that’s my thinking, are the members thinking the same? My guess is “yes!”
In every club, we have a combination of older, younger, trendier, more traditional, “high-end taste” and “comfort food taste” groups of members. Can you make everyone happy?
The thing that every one of these categories has in common is that every single member wants a delicious, beautifully presented menu, an inspired event with memorable touches and a fun, engaging experience that leaves them with a sense that they received even more than they expected.
You want them to walk away saying “Wow, that was so fun! Let’s come back for another event soon!”
If your members leave the club after an event thinking, “Well, that’s exactly what we expected and nothing more”, we have not done our jobs!
They expect a great meal and entertainment. When we give them more, that is where the “wow” factor kicks in.
How is all of this accomplished?
First of all, start with events that will resonate with your particular group of members. Your member event calendar should include traditions as well as:
• Health and wellness events
• Events that are age-specific as well as “Family Time” events
• Events for a “cause” – about something bigger than ourselves
• Special interest events (wine, travel, cooking, education)
from Culinary & Catering | 84
How do you go about figuring this out? Ask your members! New member profiles, surveys, focus groups, member committees and junior committees are great places to investigate.
Secondly, plan an event that you and your team get excited about. A menu that incorporates something new that your members have not seen before; a “surprise” element such as a new location, an enter-
from Technology Perspectives | 40
they occur.
Experienced champions can provide critical insights for determining the actual source of systems problems and help separate the application software issues from problems related to network or equipment issues.
LEAD AND BACK-UP CHAMPIONS
Historically, handling employee turnover has been a major challenge for private club management. To minimize the effect of a champion leaving the club, we recommend that, where practical, each application have a lead and a backup champion.
Backup champions are generally a bit less experienced than lead champions but receive all of the same training and attention afforded the lead. This redundancy in expertise comes in handy when any champion leaves the club.
FORMAL RESPONSIBILITIES
To make sure the champion’s approach takes hold and stays active, we strongly recommend that the lead and back-up champion responsibilities be included in the club’s human resources procedures. The following will help guarantee the on-going success of the champions program:
1) Add champion duties to job descriptions. By includ-
tainer, an unexpected gift or an interactive element that immerses the member in the event and makes them part of it.
I like to say, even if it is “Taco Tuesday” and you do this every week, never ever plan the same event the exact same way. Do something different – change the set-up, where you put the food stations, table design, mix it up with specialty linens one week and music the next, silly photo opportunities/areas, etc.
Walking into an event where you know what every item of the menu will be, where the tables and food stations will be and what the room will look like leaves no room for a spectacular experience.
Fabulous events do not need to cost more money, they just need to be more thoughtful and inspired. Plus, when you see the attendance numbers start to climb, your budgets will be happy.
Here’s to the best year of spectacular member events that you have ever had! Your members and your bottom line will thank you… BR
ing the specific champion responsibilities in the appropriate job descriptions, management can demonstrate its commitment to the program and emphasize the on-going importance of the champion role.
2) Perform regular evaluations of champions. As part of the employee’s regular performance evaluation, management should include performance criteria to cover the unique champion duties assigned.
3) Reflect champion duties in compensation. As with any special skills or responsibilities, champions should be rewarded financially for their efforts. In most cases, champions perform their special work in addition to their regular job and should be recognized financially for this important contribution to the club’s success.
Clubs that use the champions’ program find that the initial implementation, and the on-going operations of their computer software, are greatly enhanced by the work of their software product champions.
For a minimal financial investment, management can formalize the champions’ procedures and reinforce their on-going use in all club departments. A successful champions’ program offers great value to the club, by enhancing the overall success of the club management software, increasing member satisfaction with the club’s technology and maximizing the club’s return on its technology investment. BR
GLOBAL PERSPECTIVES
HENRY DELOZIER
Henry DeLozier is a principal of Global Golf Advisors. You can contact him at hdelozier@globalgolfadvisors.com.
Change Shows No Sign of Slowing
If your time to you is worth saving
Then you better start swimmin’ or you’ll sink like a stone
For the times they are a-changin’ – The Times They Are A Changin’, Bob Dylan
The songwriter, poet and social observer Bob Dylan warned us about change. Back in 1964, he said it was a-coming. Forty-five years later, we are reminded of his prescience.
In private clubs, change has arrived in full force and shows no signs of slowing. As a new year reveals itself, private club leaders should be alert to change in five key areas affecting their operations.
1) Economy – A surging economy has helped a number of clubs in North America add members in the last two years. But many experts are forecasting a softer economy in 2019. According to the Conference Board’s November 2018 report, “Higher interest rates, and the intention of the Federal Reserve to keep raising them into 2019, will create a more challenging environment for business next year.” That means membership recruitment and retention are still top priorities at most clubs.
What are the right moves for your club?
The answers start with knowing your members as well as your prospects and knowing what they value most in a club relationship. If you don’t know how they define value, ask them.
2) Delay no longer a strategy – In the heat of the recession, many businesses, including many private clubs, decided to forego capital improvements until times got better. Times got better, but many continued to delay investment.
Now many clubs are playing catch-up on deferred capital improvements. In the process, they’re discovering that new members are attracted to standards of quality that match their personal lifestyles.
Private clubs are brands, and just as a particular soft drink, computer or automobile stands for something in consumers’ eyes, so does your club stand for something in the eyes of your members and prospects. Club leaders must develop an intentional branding strategy that sustains the promises on which the club has built its reputation, including course conditions, levels of service and culture.
Global Golf Advisors estimates that less than seven percent of the 4,400 private clubs in North America are full and working from a waiting list for admission. Anticipating that the economy may soften, private club leaders must intensify their efforts to recruit new members while giving focused attention to retaining existing ones.
Often the solution is not a price change, but something more creative, such as ones that make the club more personal and relevant to today’s lifestyles.
That means that improvements to club facilities, programs and staff must reflect a long-term commitment to sustained quality. Most members want their clubs to be better five years from now and club leaders are obliged to fulfill that expectation.
Club leaders do well to establish a broad standard of excellence for the club. This is where clubs can truly be “unique,” as everyone like to profess. The standard of excellence dictates the qualities of fit and finish for the facilities, the style and level of services and the types of recreational programs offered members.
3) Brand takes on added significance – Private clubs are brands, and just as a particular soft drink, computer or automobile stands for something in consumers’ eyes, so does your club stand for something in the eyes of your members and prospects. Club leaders must develop an intentional branding strategy that sustains the promises on which the club has built its reputation, including course conditions, levels of service and culture.
For brand planning in a private club, several keys apply: (1) Confirm the club’s potential tax-exempt status to ensure conformity with the U.S. Tax Code; (2) Develop and implement a proactive communications plan that reinforces primary brand pillars, and (3) Remember that the club’s brand is reflected in everything it does . . . and fails to do. Everything communicates.
When making any key decisions about the future of the club, make sure you’re staying true to your brand promise. Security and privacy concerns are increasing. In world rife with cyber threats, private clubs are highly vulnerable targets. People of means gathered in one easy-to-access
vault of names, addresses and possibly financial information constitute an attractive target for those ill-intentioned among us.
Members place their trust in their club to safeguard their privacy. Break that bond and the consequences could be irreparable. Club leaders must contract with companies expert in securing their club’s sizeable data storehouse and secure this information. This threat will expand in 2019 at clubs that are unprepared.
Access and affordability of labor is changing clubs. Most clubs surveyed by GGA report increasing direct and indirect labor costs. Many clubs are outsourcing work through contract-labor arrangements. Some clubs are securing overseas workers for seasonal needs. All clubs are evaluating steps to reduce the reliance on accessible labor for routine club services.
In some clubs, self-service is taking hold. In progressive clubs, new solutions including F&B orders entered on tablets, are reducing head-count. Some clubs are exploring making the golf halfway house and the tennis and pool snack shacks honor-system facilities, where losses are likely to be less than the labor costs to secure them.
On the flip side of Dylan’s ballad that promised change was a song titled “Honey, Just Allow Me One More Chance.” A new year gives us revived opportunities – one more chance – to get ahead of change. We better start swimmin’. BR
NOEL WIXOM
Noel Wixsom is founder of Country Club Technology Partners (CC Tech), he can be reached at (510) 589-4512 or via email:noel@cctechplan.com
The Value of a Private Club IT Security Committee
Over the past few years there has been a heightened emphasis on cyber security. Recently, auditors in New York, California and Florida have asked private clubs to provide a report showing that their networks are “secure.”
We’ve seen the auditors’ request and think it’s a good one. However, there are no real guidelines as to what should be in the security report.
We have assisted a number of clubs to satisfy the auditors’ request for documented IT security, but without specified guidelines, however, it’s unclear how to go about it. The best place to start is to form an IT security committee. We can hear you sighing, “just what we needed . . . another committee.” This, however, isn’t a member committee, but rather a department head committee.
Why should a private club form an IT security committee? Here are a few reasons why this makes sense.
• Facilitates IT governance
• Removes IT department silos
• Provides organizational buy-in
What is IT governance and how is it done at private clubs today? IT governance is the overall management of how the club’s IT systems are set up, supported and maintained.
Most clubs (and other kinds of businesses throughout the US) have ceded IT governance to their outsourced IT vendors, who have set all the club’s IT policies. These polices include passwords, data backups, web browsing and computer patch policy, among many other policies that every club has. Unfortunately, we’ve found that very few, if any, of these policies are documented, reviewed or followed.
Who should be on the IT security committee? There’s no one right answer to this question, but we’ve found that a committee with the following personnel works best.
• General manager
• Controller
• Head of human resources
• Director of security/outsourced security
• Internal IT/outsourced IT
• Facilities manager
You may also consider including the chef, director of golf, superintendent and other key department heads.
The current setup has the outsourced IT company making all the decisions for blocking illicit websites, creating passwords and backups, providing remote access and monitoring other areas.
Is there a better model for IT governance? We believe there is. And it starts with the IT security committee. Proper IT governance should come from an internal IT security committee working in conjunction with the local outsourced IT company to set policy.
An alternative model would have the IT security committee set policy with input from the outsourced IT vendor, and the outsourced IT company would carry out the policy set by the IT security committee.
A number of the club’s key IT policies should be reviewed and overhauled by the IT security committee. Then the club should engage an outside third party (possibly the auditors) to verify that the policies set by the IT security committee are properly installed and documented by the outsourced IT com-
pany. This would provide needed checks and balances to the current IT support structure.
The security committee concept would remove IT departmental silos as well. This structure, in use at a number of private clubs today, has the facilities director managing the security cameras, and the controller overseeing the data network. This is a good example of IT silos. It’s rare that these two departments would collaborate on the overall setup of the club’s different systems.
The IT security committee brings all the departments together, which fundamentally changes the overall IT structure from a departmental view of IT to an organizational view. This organizational approach would give the club a global view of the current and future IT systems.
A benefit of this setup would be buy-in from members of the IT security committee as a group. This is a significant change from the departmental approach. We often hear department heads complain that new IT systems are selected without their input. Basically, the organizational approach proactively brings the department heads to the table, to get their input and buy-in on new platforms.
In addition to IT governance, the IT committee would also review and approve IT policies. We’ve found that there are several key areas for which polices need to be set. Here are a few that we found the auditors are looking for specifically.
• Passwords
• Onsite and offsite backups (archive)
• Website blocking (blocking illicit websites)
• Blocked countries
• Microsoft and third-party workstations
It is important for the IT committee to be wary of creating too many IT policies. If you create a policy, it must be followed. These five policy areas listed are the ones that you might want to focus on first.
Another benefit of creating these polices is accountability. Documenting the referenced policies forces the outsourced IT company to follow them. In the event of a data breach, and it was found that these polices were not followed, then the outsourced IT company could be liable for any damages. These policies, for the first time, hold organizations accountable for the management of the club’s systems.
The reality is that auditors’ IT security requests are not going away. In fact, they will probably increase over time. A private club is going to have to rethink older IT management practices and taking an organizational approach to managing the long-term IT security for the club is a practical way to solve this problem. BR
FRANK WOLFE
Frank Wolfe, CAE, is a writer, speaker, and CEO of Hospitality Financial Technology Professionals, a global nonprofit association. Wolfe serves as a director on several boards, is an advisor to a hospitality investment fund and has won numerous industry awards including being inducted into the HFTP International Hospitality Technology Hall of Fame. He can be reached at frank.wolfe@hftp.org.
Is Mr. Club Robot, CCM, the Future Standard For The Club Industry?
Club professionals face many obstacles to success. Some of these include theft of materials, the physical safety of staff and members, doing more with fewer employees, and contributing to the club’s bottom line.
Can robotics and artificial intelligence (AI) help with these obstacles? Absolutely. Let us take a look at some of the available robotic and AI technologies that will impact our future in the club industry.
The first is biometrics, the technical term for body measurements and calculations. It has long been used as a form of identification and access control. But with the proliferation of voice recognition devices (think the Amazon Alexa, Apple Siri and Google Assistant), biometric technology has moved into the consumer main stream.
Right now, Wynn Resorts has the largest deployment of voice recognition devices in hospitality. According to Wynn founder Steve Wynn, by adding Alexa to guest rooms it was immediately like having a “…butler at the service of each of our guests.” Adding these devices to the club environment provides an opportunity to increase member services tenfold.
While privacy concerns exist, voice recognition devices are designed to only listen when they hear a specific command. But voice recognition devices do get confused, sometimes with amusing results.
You may remember when a San Diego television news broadcast covered a story about a young girl who ordered a doll house via her home’s Alexa? When the news anchor reported the story, he accidentally triggered home devices to order dollhouses in the homes the story was broadcast in.
If you want to be amazed by a Google Assistant combined with artificial intelligence, check out the YouTube video titled, “Google Assistant Calling the Hairdresser for an Appointment.” This is a powerful video
that can actually illustrate the advantages of a marriage between assist devices and AI.
During the video, the Google Assistant calls the hairdresser, interacts with the operator to determine what the guest wants, negotiates an appointment time, provides the guest’s name and then signs off.
The next technology that has gotten a lot of attention from the general public is robotics. Pop culture has led us to imagine robots as some kind of metal skinned creature who is either like the goofy C3PO in Star Wars or a creepy robot like the one portrayed in The Terminator. But recent robotic technology advances have changed some of these common perceptions.
How many of us have a Roomba® picking up dust off of our floors? Not so out of the ordinary for us to experience a robot-assisted device in our worlds.
In the hospitality arena, a Hong Kong-based company has created “Min.” She has been around since 2014 and is a total robotic card dealer. Later versions of Min are touted to be able to identify players and speak multiple languages. While her skills today don’t segue into the club DNA totally, imagine having a “relative” of Min as the starter, stationed on the golf course taking orders, or even as a scorekeeper for golf tournaments.
A second version of a robot in the hotel environment is the multi-lingual robot staffing the front desk at the Henn-na Hotel based in Japan. This Japanese hotel has true “living, breathing robots” who check guests in.
Like the voice-activated technologies, this technology is still in its infancy. If something goes awry no one should be too upset or blamed for feeling a little apprehensive. Once a guest checks in, their luggage is taken to their room where another device greets them on the nightstand and stands ready to turn off the lights and tuck them in.
TRIBAL MAGIC
Creating Nowness Now
Delivering the No Nowness Now Audit
Gregg Patterson is president of Tribal Magic and can be reached via email: GJPAir@aol.com
Manager Sue is at The Wanna Be Country Club, sitting across from Manager Joe, her No Nowness Now report in hand, the end product of her recent secret shop of the Wanna Be Country Club.
Manager Sue is a certified knower of Nowness. She knows when hospitality staffers are in the now, when they see, focus on and are engaged with the place they’re at, the people they’re with, the stuff they’re doing and the moment they’re experiencing. And Sue knows that job one for staffers is to enter into and align themselves with the Now of the people they’re serving.
And she’s pondering Nowness now.
Manager Sue gathers her thoughts, gives Manager Joe the look, clears her throat and gets right to the point: “Let’s review my Nowness report and discuss a few of the things that need doing to improve The Wanna Be’s Nowness factor right now.”
Manager Joe gulps, glances at his cell phone, takes a quick peek at his laptop, looks at his wrist watch, tells the front desk to buzz him if the pesident’s wife calls, looks in the mirror, brushes his hair, straightens his tie and tells Manager Sue, “I’m all ears and I’m in the Now.”
Sue groans.
“Manager Joe, Nowness is about being in the moment, focused on the Now, aware of who you’re with, where you’re at and what’s happening around you. Clubs are on a mission to defeat Nowness deficiency out there in the commercial world.”
Joe ponders his Rolex, glances at the computer, turns up the music, stares at the gravy stains on his pre-WWI tie and says, “I’m with you Sue, in The Now, 100 percent!” Sue groans.
“Manager Joe, your team scored 17 out of 100 on my secret Shopper Nowness audit. That number ain’t good and qualifies The Wanna Be for No Nowness Now status.”
Manager Joe gulps, coughs and weeps. He peeks at his wristwatch, glances at the buzzing, for-personal-use-only cell phone in his left trouser pocket, surreptitiously taps out a text message on his for-official-use-only desk top cell phone then gives Sue a hang-dog, help me expression. Sue groans.
“Manager Joe, I could list a hundred high tech and low tech No Nowness Now encounters during my secret shop. Depressing stuff. So let’s forget all that and focus on the tactics you’ll need to make staff Nowness happen.”
Joe gulps. Gurgles. Burps. And weeps. Sue groans.
CREATING NOWNESS NOW
Manager Sue breathes deep, gives quivering Joe the “You’re one dumb piece of equipment” look, mentally reviews her recommendations for the prevention of Nowness drift and Nowness diversion at the Wanna Be Country Club white paper and ponders what’s needed to make staff Nowness happen.
Walk the talk: The GM and the supervisors must lead by example by doing Nowness right, publically and often.
Show the flag: The GM and her supervisors need to walk and talk lots because a leader’s presence and example will bring people back into the Now. Prevent day-dreaming and emotional drift by being a presence throughout the club.
Outlaw the smart phone: Make front-of-the-house cell phone usage verboten for management and staff. No calls, no text messages, no games, no nothin’.
Go cockless: Take off the watch and hide the clocks when you’re meeting members or staff. A single glance tells the someone you’re talking to that you’re not in the Now.
Eye contact: When meeting others, look ‘em in the eye.
Listen actively: When meeting others, look ‘em in the eye, lean forward, nod your head and take notes.
Ask questions: When meeting others, ask questions.
Upbrief: At the start of each shift, warm up the team and get them re-focused by reviewing who they’ll encounter, what they’ll be doing and what might happen.
GREGG PATTERSON
Debrief: At the end of each shift, review the day’s doings with stories and questions – what was done, who did it and the details.
Names and faces: Educate staff about the people they’ll be encountering.
Screen savers be gone: Screen savers are diverting. Shut ‘em down during meetings.
Serendipitous encountering: Set aside time for unplanned encountering in the office and throughout the clubhouse and focus entirely on the encounter you’re having.
Condemn multi-tasking: Multi-tasking dilutes the moment by thin slicing experience. Prioritize tasks and focus on one thing at a time … completely.
Be interesting: Boring is a Nowness disrupter. Hire interesting people, keep ‘em stimulated and boost their interesting quotient.
Sanitize the desk: Keep the desk top clear of papers that’ll distract from the Now.
Apartness: Schedule meetings far enough apart to provide time for a deep dive with whoever you’re with.
Personalize messages: Avoid automated responses. Personalized notes tell others you were in the Now when you met.
No speaking in tongues: Insist that staff speak English when they’re around members because members can’t share in the Now unless they understand what you’re saying.
Manager Sue ends her pondering of these, her first tier Nowness tactics, clears her throat, recites the list and concludes by saying…“Manager Joe, make sure that high tech supports high touch. Make sure low tech supports high touch. Make sure that the team knows they’d best be in the Now to do hospitality right. And show ‘em what’s right by living Nowness whenever you’re at the club.”
Manager Joe nods in agreement, burps, gulps and giggles, says, “That’s quite a list”, listens to the tinkle of an incoming message, glances at the cell phone screen, peeks at his wrist
Manager Joe, make sure that high tech supports high touch. Make sure low tech supports high touch. Make sure that the team knows they’d best be in the Now to do hospitality right. And show ‘em what’s right by living Nowness whenever you’re at the club.
Walk slowly: When walking the club, walk slowly and focus on where you’re at not where you’re going.
Teach eye opening: The more closely you look, the more interesting people and places become. Teach staff the stories behind who is and what is
High tech high touching: Let high tech increase high touch. Use the membership information system to personalize current and anticipated encounters.
Do the radar: While staff are doing and talking, teach them to scan continuously for members and to make visual and verbal contact with those they see.
Ink it: Note taking creates focus and lets others know you’re in the Now.
Describe i: Ask staff to look closely at where they’re at, then describe it in words.
No reading during meets: Have paperwork read before or after the meeting. Reading during a meet signals I ain’t here, now.
watch, taps out a text message and says, with conviction, “I believe in the power of Nowness!”
Manager Sue groans…
NEEDING NOWNESS NOW
“Joe, these are challenging times. Staff are there when they should be here. Managers are there, when they should be here. Bodies may be present but the brains have gone elsewhere.” Joe nods, enthusiastically and glances at his watch.
“Joe, there’s magic in Nowness. Members feel it when they’re at the club. Clubs with Nowness get members and keep the members they get.” Joe nods, enthusiastically and taps out a text message.
“Your job as the champion of Nowness is to lead by example, to show others that you’re focused on who you’re with, where you’re at and what you’re doing.”
Manager Joe nods, enthusiastically, and starts drafting a Nowness memo to his employee team.
Manager Sue groans and rises to exit.
“Manager Joe, get focused, live in the Now, find the wonderfulness of where you’re, what you’re doing and who you’re with. And never forget…enjoy the journey!” BR
LEGAL COMMITTEE BY ROB
HARRIS
Golfer Struck by Thrown Club
Dissatisfied with His Litigation
Recovery
A Louisiana appellate decision offers words of wisdom on multiple levels.
Opinion Excerpt #1: “On July 14, 2012, Mr. Hunter and Mr. Terrebonne played golf together with a foursome at the Avondale TPC Golf Course in Jefferson Parish, Louisiana. After making a bad shot, Mr. Terrebonne got upset and threw his golf club.
Life Lesson #1 for Litigating Golfers: Avoid playing partners with bad tempers.
Opinion Excerpt #2: “The golf club flew through the air, sailed off to the left, and hit Mr. Hunter above his right knee on the front right portion of his thigh.”
Life Lesson #2 for Litigating Golfers: If you can’t avoid playing partners with bad tempers, stay out of club throwing range.
Opinion Excerpt #3: “Although Mr. Hunter initially fell to the ground in pain after the incident, he was able to finish playing the remaining fourteen holes of golf.”
Life Lesson #3 for Litigating Golfers: Choose your poison. If assaulted by a soaring golf club, either forego the remainder of your round, or forego the hope of a large lawsuit recovery.
Opinion Excerpt #4: “At trial, Mr. Hunter and his wife testified that the day after the incident, he was in severe pain, his entire leg was severely bruised, and that he could barely walk. Plaintiff, however, did not seek medical treatment until a few days after the trauma at an urgent care facility.”
Life Lesson #4 for Litigating Golfers: If you are going to claim pain and suffering, and you can’t bring yourself to give up 14 holes of golf, at least go to the doctor right away.
Opinion Excerpt #5: “Prior to this incident, Dr. Gallagher had treated plaintiff since at least 2006 for left knee pain caused by chronic tendonitis and since 2009 for right knee pain caused by arthritis… Dr. Gallagher testified that, on August 1, 2012, he found, based on his examination Mr. Hunter’s right knee, that it was ‘basically the same’ as during previous visits and that, although there was tenderness, there was no indication of a meniscus tear in the right knee at this visit.”
Life Lesson #5 for Litigating Golfers: Assume your testifying physician will tell the truth.
Opinion Excerpt #6: “Soon after Mr. Hunter saw Dr. Gallagher, Hurricane Isaac struck the New Orleans area, and the evidence showed that Mr. Hunter had to prepare his home for the hurricane.”
Life Lesson #6 for Litigating Golfers: Hurricane preparation is not conducive to prevailing on a claim for injuries caused by being on the receiving end of a thrown golf club.
Opinion Excerpt #7: “According to medical records, after the hurricane, Mr. Hunter had an MRI and saw Dr. Gallagher again on September 10, 2012. At this visit, Mr. Hunter told Dr. Gallagher ‘he had increased pain and swelling in the right knee with hurricane activity.’…Dr. Gallagher also testified that the hurricane preparation activity could have caused a meniscus tear if he suffered a twisting motion while working.”
Life Lesson #7 for Litigating Golfers: See Life Lesson #6.
At trial, the jury awarded Mr. Hunter general damages of $35,000 and medical expenses of $280, a paltry sum in his opinion, leading him to appeal the jury’s verdict. The appellate court was not sympathetic, affirming the award. BR
Imagine a club manager like this who has total recall of the board of directors meeting, is agnostic to every club member and doesn’t need a vacation.
One of the most up and coming types of robots today are security robots.
Knightscope, a California company, has created security robots that may eventually cause the “eye in the sky” to become extinct. Pechanga Resort & Casino in Temecula, CA is one of the first to deploy 24/7 robotic surveillance.
It has a stationary robot that is nearly six feet tall installed outside its main casino valet entrance, while a 400-pound robot rolls around the hotel’s lobby and massive glass atrium looking for suspicious activity, packages and quirky sounds.
It also uses thermal imaging to look for hot spots — potential fires and even food spills. These images are transmitted in HD quality around the clock. Imagine a couple of these robots cruising the grounds on a self-driving golf cart and you never have to worry about a member having too much to drink to get home or concern about clean up after last night’s wedding before today’s Father/Daughter dance. Or like the robot that sank a hole in one at a recent PGA event… a robot golf pro. There are many exciting technologies coming to the hospitality industry, some that are home grown to the industry and some that are duplicated from other industries. These technologies cause us to ask the question that begs to be answered, “Will we be replaced?” Stay tuned for the answer to that question. BR
The same technique can, and should, be used with employees too – especially with the sometime critical shortage of finding, attracting and keeping staff who embody your club’s true essence. There are several good examples available on the internet of companies who have asked their employees to share their Six Word Stories about working there.
To spark your thinking, I recommend you take a few minutes to look at these two sites. One is from Gulfstream (https://www.youtube.com/watch?v=AaDakfDs0SE) and the other is from Burlington (https://www.youtube.com/ watch?v=0vWG62o_XaA).
The short Six Word Stories that your members and/or employees write will be brief glimpses of their experiences at your club. They will convey their passion, their dedication and their relationship with it. In other words, they are showing you the club’s core-essence upon which you can build or strength your brand strategy and/or marketing campaign.
from BoardRoom Basics | 18
You must be a willing participant, leave your ego at the door and proactively seek out a mentor and third-party feedback to gain a full perspective of your strengths and weaknesses to keep you moving in the right direction and accomplishing your goals.
You must have a high emotional IQ and have the attitude that feedback is helpful, not a personal attack. Ready to get started? Here is a list of the top seven tools that create self-awareness, so you can successfully map your career success:
1) Member and employee satisfaction surveys: Ask your members and your team how well you are doing. You can make this part of an overall survey but ask pointed and specific questions to get real feedback, not just a rating scale with room for comments.
2) Personality tests. Get to know yourself: Lumina Spark is an excellent example of the many personality tests out there that may surprise you as to what drives you and where you need to improve. Invite a facilitator and experience the discovery with your entire team.
3) 360 reviews: Insist on regular, consistent feedback from your boss: 360 reviews take all the aspects of your work, character, strengths, and weaknesses including your work/life balance. It’s a thorough and complete examination with someone who sees you on a partner level that leads to deep introspection and insight.
4) Personal Mission Statement and SWOT: Write a personal marketing and action plan. Identify your brand and your mission statement. Set goals and strategies for accomplishing each one and include measurable metrics
Perhaps Larry Smith, founder of Smith Magazine, explained the value of the SWS best, when he wrote that the Six Word Story is “a simple concept [that is] an effective tool to spark conversation, crystalize goals, and boil anything down to its core.” Or as I also read somewhere, “Information is all well and good, but tell the story. Stories crush data.”
The upshot of all this is simple. Recognize the simple truth that storytelling is a powerful tool for building a stronger connection with your members and staff. So, I encourage you to launch your own club’s Six Word Story project by challenging your board, all your members, and each employee to encapsulate the essence of their club in a concise half-dozen words.
And, remember, too, that in addition to their value in your strategic planning and marketing, the stories can be displayed (anonymously, of course), on story-boards in the club’s locker rooms, foyer, lunch rooms, and offices.
Your bottom line will thank you! BR
to chart your progress. Create a personal SWOT analysis using the information you learned about yourself in Steps one, two and three. Know your strengths and weaknesses.
a) Evolve: Never stop learning and expanding your knowledge base. Listen to others, read good books, attend lectures and conferences, take classes. Never stop expanding your mind. You will not only increase your knowledge but open your eyes to seeing things a different way. The more you open up your vision, the more you can see yourself. Leaders are readers.
b) Lean on your mentors: If you don’t have one get one. The guidance and caring criticism from a mentor is invaluable. Seek someone you trust and ask them to mentor you. If could be as easy-going as monthly luncheons or as in depth as going through the above five steps with someone.
c) Rely on your team: Build or join a team that fosters creativity and open mindedness. If you are a team leader, encourage your team to express themselves in a safe environment with no judgement. Develop trust within the team. Be prepared to be vulnerable and reward others when they are. Your team environment is a huge reflection of who you are as a leader.
Board presidents that are really happy with their manager often tell us one of their favorite things about their GM/COO is that they are always well informed by them and their relationship follows the “no surprise” rule.
Getting the right perspective on your career can be enhanced if you are willing to engage theses seven strategies. Remember, when it comes to your career the best surprise is “no surprise.” BR
The agronomists tell me that a variety of turfgrass varieties can be employed, if only consumers would modify expectations, especially as it relates to the emerald green visual effects we’ve all become used to.
We spend thousands of dollars to travel to Scotland and elsewhere to play on hard, brown and dry golf courses and love it. But we eschew any brown spots at our home course or club and often hear talk about firing the superintendent, regardless of the challenges they may encounter. I’m as guilty as anyone for enjoying the pristine conditions
we’ve become used to, and of supporting same by membership at manicured clubs. However, our game is shrinking, and cost is always near the top of the reasons given for not playing, either by former golfers or potential new golfers. Does it really have to be so green? Maybe “green” (as in brown and more environmentally friendly) is also more economical. It costs a lot to provide a round of golf, and either the golf industry has to find ways to do it more efficiently, sell that to new golfers or convince the existing golfers to pay for it. Next time you tee it up, think about your share of the cost of that round. BR
Privacy is very important and goes much further than just who you let into the club. It may impact operations, the application of certain federal laws and how the club is viewed in the community.
Remember, many members prefer to maintain exclusivity and by attracting too much non-member business or by conducting too many non-traditional activities, the club may lose what makes it unique.
While there may be reasons for a club to change to taxable status (and survival may be one of them), the decision
must have member support. In addition, check with tax and legal advisors before a final decision. Limitations and aggravations are present whether you operate as a taxable or tax-exempt organization. BR
Kevin Reilly, JD CPA CGMA is a partner with PBMares, LLP located in Fairfax, Virginia and has specialized in the club industry for more than 25 years. He may be reached at (703) 385-8809 or by email at kreilly@ pbmares.com.
Ed Yoder, CPA is a tax partner with PBMares, LLP and is located in its Harrisonburg office. He may be reached at (540) 434-5975 or by email at eyoder@pbmares.com.
from Club Facts & Figures | 82
IDEAS
Members Traveling ‘Far and Wide’ Share Experiences
It’s amazing how much we love to see our image and name in print. Spend five minutes on any social media platform and you’ll realize just how true that is.
A club in Virginia is capitalizing on this quirk of human nature to drive engagement for its monthly digital newsletter.
Through the Far & Wide program, the Country Club of Virginia (CCV) asks members to share photos of themselves wearing CCV gear on their world travels. Each month, they offer a prize to the member who provides a photo from the furthest, most exotic destination.
The club offers prizes for the winning entries – something as simple as a sleeve of golf balls – and then publishes the pictures, with details of where and when they were taken in the club’s monthly digital newsletter.
The contest engages members of all stripes (read: non-golfers) and sparks conversations about their travels and absences from the club with both staff and members alike. But more importantly, the contest has increased readership of CCV’s digital newsletter, drawing attention to upcoming events and promotions. “This was a fun, exciting, and inexpensive way to get members involved,” said the club’s Communication Director Ashley Payne.
Other variations of this program include the use of social media hashtags, so that the club can also benefit from the public exposure of social media posts. For clubs with more social media savvy members, challenge them to post selfies using a hashtag of your club’s own design (#farandwide #YourClub) and see where your members are traveling this month. Share those images in your next newsletter to encourage participation and spark conversations where you live. BR
LEE HILBERT (LEFT) AND HIS WIFE RICHIE (RIGHT) MONTE CARLO, MONACO
GENE WEBB (RIGHT) AND HIS SON SPENCER (LEFT) BANDON DUNES, OREGON
MEGHAN THIBAULT
Meghan Thibault, Innovative Ideas editor, is a professional writer and communicator with a passion for storytelling. A writer at heart, Thibault has been involved in the hospitality and club industry in Canada, the Caribbean and Hawaii. She is currently a member and on the membership committee, at Mid-Pacific Country Club in Kailua, HI. To submit an idea or story for this section, please email ideas@boardroommag.com
Skip the Straw Fiddler’s Elbow Moves to Reduce Its Environmental Impact
If you spend any amount of time on social media, you’ve probably been saddened by images of beaches inundated with plastic waste, massive floating islands of garbage in our oceans, and turtles or other marine life with plastic straws stuck attached to them.
Americans use 500 million plastic straws each and every day. Citizen activists and non-profit organizations across the country are advocating for individuals to make a small change in our daily habits and for organizations to make a shift as well.
Fiddler’s Elbow, a private club in Bedminster, New Jersey, has heard the call and is doing its part to change the way it does business. After some experimentation with various samples, the club landed on the exclusive use of stainless-steel straws in the fine dining rooms, and compostable straws made from corn based in the more casual, higher volume dining outlets.
While the changes have caused a small bump in straw costs, the club and trustees feel that their contribution to the preservation of our planet and our oceans is well worth the investment.
A small amount of training has resulted in minimal loss of inventory. Clubhouse manager Michael Nyerges claims that over a three-month trial period, the club only lost half a dozen stainless steel straws.
Service staff now separate the new straws from glassware and soak them in disinfectant before they are run through the dishwasher and sterilized with other plate ware and glassware.
The reaction from club members has been more positive than anticipated and the club is encouraged about future initiatives. “Most members are truly excited that we are doing something positive for the environment,” added Nyerges.
The club takes its environmental stewardship seriously and hopes to launch a club-wide green initiative in 2019 that will include using environmentally-friendly alternatives to plastic cups, lids and takeout containers. BR
A New Day Dawns
JOHN R. EMBREE
John Embree is CEO at the United States Professional Tennis Association and can be reached via email: john.embree@uspta.org.
Over the past year, the USPTA has been working with the governing body (USTA) on becoming the only accredited tennis teaching organization in the USA. After getting provisional accreditation in March, we are now on track to become fully accredited in the coming weeks.
Through an alignment with the USTA, we are committed to truly elevating the standards of tennis teaching professionals and coaches. A new certification pathway is in development, which will require an aspiring professional to have 1,200 hours of experiential learning along with 300 hours of either face-to-face workshops or online learning.
This would be a dramatic departure from our current requirements of only seven hours of online education before being eligible to take the USPTA certification exam.
The new USTA accreditation program is the most important topic facing our association and the industry. Thus, it’s appropriate to shine a light on the key elements of how this new partnership being forged with the USTA will look. It is vital that CMAA managers and club boards of directors understand what is happening in our sport.
This is an incredible opportunity to change the way tennis is delivered in the county going forward. Here is what we know as of this writing:
USPTA & USTA seek to attract new tennis professionals – We want to support existing professionals to help grow their business and ultimately grow tennis in the U.S. The primary purpose of USTA accreditation and USPTA certification is to create the best on court experience possible for all types of players.
In addition, we want to provide career pathways for USPTA members by giving them the competencies necessary to have a competitive advantage to advance their career.
USPTA wants to raise the standards for certification – When the USTA came to us two years ago with the concept of improving the consumer experience on- court and making our pros better, we wholeheartedly agreed. The only way we can grow our game is to enhance the competencies of tennis professionals through certification and continuing education requirements.
We have more great teaching pros in the United States than anywhere in the world. However, we need higher standards for all tennis professionals. This accreditation and certification program gives us the best chance to accomplish this.
Certification requirements begin in 2020 – We have a lot of work to do to finalize the details with USTA. All certified USPTA members as of Dec. 31, 2019 will be exempt from the new certification standards. Starting in 2020, all new applicants will need to meet the new requirements.
The USTA realizes that these new higher standards need to mean something in the job market. This means promoting these higher standards to those that hire and seek out teaching pros.
Higher standards ultimately should lead to better jobs and more business. That will take time, but we will develop a communication plan with USTA to educate those that hire tennis professionals and our consumers.
USTA will be providing resources and leveraging their assets for this, i.e. PSAs on televised events, marketing to club managers and owners, etc.
The USTA also recognizes that education for US tennis-teaching professionals should be delivered by the certifying organization (USPTA). Therefore, we will work collaboratively with the USTA to develop unparalleled educational resources called USPTA-U (USPTA University).
There will be other exclusive benefits for USPTA pros like: Grounds passes and/or tickets to sessions at the U.S. Open, U.S. Open Series events, etc. as well as benefits for USPTA pros when visiting the USTA National Campus and the Billie Jean king National Tennis Center.
USPTA pros will also receive special recognition with Net Generation.
Finally, the USTA has assured us that they have no intention of getting into the certification business or the tennis professional association business. However, the USTA needs the USPTA to help deliver programs at the grassroots to truly grow our sport. We cannot do it separately.
It is a new day for the tennis industry and for the USPTA. I am very enthusiastic about the potential that this partnership has for us and the sport in general. BR
Christopher Boettcher, CCM, CCE is general manager/COO of The Beach Club of Santa Monica, California. Chris can be reached via email: Christopher@TheBC. com
Board Member: What’s the Best or Worst Thing About our Business?
The best and worst thing about our business? That’s a question every board member should be asked as they enter the realm of club governance.
I recall a local chapter discussion at a club from my not-to-distant past with a panel of board members and a former club manager turned headhunter acting as facilitator, and another similar situation at CMAA’s Golden State Chapter’s recent fall conference.
The takeaway was more of a discussion with a cross section of board members about relationships between board members and their manager. I was really proud of my board member/treasurer who, when the facilitator asked who knew what a CCM (certified club manager) was, he was able to stand up and speak to it.
The best and worst about our business? It’s a fascinating question. Ask your fellow board members, club members at large and non-club members who are close to the issue of club governance. That’s really where you’ll get some interesting responses, especially from those that know the business but have no direct responsibility to it or with it.
One perfect example is the general manager’s spouse. There’s someone you’ll get a straight, unblemished opinion about the good, the bad and the ugly in our business. I’m sure you’d get the same if it the question was about practicing law, selling shoes or leading the country. You’re going to get the raw reply, right?
And I think we know the answers, right? It’s not the good food, the free parking or the great hours, although some of us have really engineered our schedules around the holidays and weekends to make sure we still have a life. It’s probably not going to be the foolproof governance systems that shine on and protect the club’s management. It’s also probably not going to be the employees working together in concert like an angelic orchestra. No, it’s the real world and we expect issues. Like any of your businesses, if the business operated perfectly you wouldn’t need a manager to run things.
Best? That’s a broad word but when asked, the best is the joy of giving joy. Most of us are in the business because we have a servant’s heart. We love to make people happy.
So when we do, we’re singing from the mountain tops, jumping for joy and generally very happy ourselves. That’s a great byproduct and a joy for those that are so close to us, like a spouse. Generally, the reply you get from board members and members alike, is that they enjoy the service of the tenured staff and the pleasure to be acknowledgedwhere everyone knows your name!
It’s the happiness business so it rubs off on the board members and members in general if the club is fulfilling the mission of most clubs: exceeding member expectations. So was the case of the board members at our meeting. They loved the people in their club, the traditions of the club, the culture and the facilities. But the best thing was, mostly, the people.
It’s also the networking. The relationships we gain through our clubs are fabulous. The members become endeared and that can be very helpful. Members get a lot from treasured staff too. But it’s also CMAA: the Club Management Association of America, a rare and giving association. Members are not really competing with each other so the sharing is really cool. While great for managers, it’s also great for the board members. You can get direct opinions, access and benchmarking detail through your manager. They can also get great camaraderie and a sense of connection in their club community, a valuable asset, and a true “best thing” from the perspective of a club manager.
Worst? Another broad question but a good one for those who are close to it … those who share the pain and agony of being the club president’s wife when something goes terribly wrong; the closest confidant of the board member who faces some tough discussions with some friends and fellow golf partners, and the club’s past president who continues to get used like the fire hydrant at a dog park.
But ask the managers wife? Her response is similar to the members “best” response but a different take. Many clubs
have sacred cows, or employees who feel and are given entitlement that is abused and runs silent with the members.
In a recent column, called Not My Section, I wrote about a waiter everyone in the member community liked but who was abusive to fellow staff and ignored management. It’s situations like these that are the bane of our industry.
Sure, the long hours and sitting home alone on Thanksgiving is not fun for any family member of a club manager, but the reply from most managers is that staff problems coupled with micromanagement by boards, settle in the worst category.
Members and board members may have a different take, like the food, bad service or misbehaving members. Those are painful but not as detrimental. Management turnover in our industry is way too prevalent, and if most board members were more cognizant of how a people-business like clubs operate it would be helpful to no end.
Sure, there are crappy managers in our industry and I’ve probably been one at one point. But the real point is this: club governors needs to let the professionals run operations, while keeping board members well informed, but allowing the “club management” to lead the day-to-day operations.
More emotional intelligence is needed to stay connected with management while being cognizant of staff issues. More board support and spreading the word of, what’s going on at all times, to members is required. Being transparent and communicative is a board member’s job number one. Of course, there will be confidential issues, but helping management by not managing, is the best thing they could do.
I’m lucky because I just closed out a year with one of the best club presidents I’ve ever worked with. I hope the best for your club, and I hope this inspires one or two club board members to rethink their situations with their managers. LEAD ON! BR
and many other areas of the club where the revenue in these departments have costs associated with them.”
Another warning sign arises “if your club is using initiation fees to fund operations and not capital expenditures, whether new or replacement. If you are in this position, that says you either don’t charge high enough dues or you don’t have enough members, or both. This may seem a reasonable way to fund operations in the short term, but not adequately funding capital is a long-term serious issue facing many clubs today,” Levy explained.
“The Fram oil filters’ man, in the commercials, used to say, “You can pay me now or pay me later.” Members want to defer as they do not want to charge themselves more dues then needed, and do not want that nasty word coming up either – ASSESSMENT.”
Levy also suggests that with the modern technology available today clubs can predict which members might be leaving.
“The warning signs are discounting of membership, cutting back on goods and services, cutting staff and placing the load on the staff that remains. All of these manifest in a variety of negative ways that send very distinct signals to the members and the staff.
“By the time the financial alarm goes off, a club’s financial condition has likely already been in decline. The signs of trouble are plentiful and obvious, assuming you know what to look for.
“First, clubs are in the dues business,” Coyne emphasized. “The single largest source of income, and hopefully capital comes from member’s monthly dues and initiation fees, respectively.
“When membership is down, revenue is down. When replenishment members require discounted fees to join, capital improvements and normal repairs are in jeopardy. Likewise, as staff cuts take place and additional burdens are placed on those remaining, staff turnover begins to increase, diminishing the personal level of service to your members. As service suffers, unhappy members don’t
There is one very simple, very comprehensive financial warning sign – net worth (member’s equity) over time. Chart the club’s net worth since 2006 (prior to economic meltdown). Our research shows that 50 percent of the clubs in the industry are worth less today (inflation adjusted) than they were in 2006. This one measure captures the sum total of the club’s recent past and provides a key perspective on what needs to be done in the future, which is to increase net worth.
— Ray Cronin, principal with Club Benchmarking
“There is no reason not to create a way to “tag” members with a high probability of leaving a club through tracking member usage in key areas – food and beverage revenue/ visits to the club, use of the fitness facility, golf rounds, tennis activity or the like. Start by tracking dues as a percentage of revenue…and compare that to area clubs, it’s a big KPI (key performance indicator),” Levy added.
“The biggest issue that a club is in trouble is a dysfunctional board…factors discussed in a recent Publisher’s Perspective,’ outlined Kevin Reilly, partner with PBMares LLP of Fairfax, VA.
“One of the key responsibilities of any board is ensuring the financial health of the club. This ranges from making sure that payroll can be met as needed, normal operating expenses are covered and that plans for both short and long-term capital needs are able to be met. A lot of the problems feed off each other.”
Rick Coyne, a principal with ClubMark, an industry consulting firm, agreed the first signs of trouble are generally encased in membership health.
refer potential members, and this often become a public relations negative. Events and other activities that created a sense of community are scaled back, lessening member collisions and opportunities to engage.”
Coyne maintains that the club becomes more of a public accommodation as opposed to a relevant lifestyle experience. “Once a member perceives greater value in another club or even a public venue versus the troubled club, an even greater exodus can occur.”
And as membership declines, the financial shortfall exacerbates the whole situation.
“I do believe the most common shortfall and indicator of a club that’s in trouble is financial,” agreed Matthew Allnatt, general manager of the iconic Jonathan Club in Los Angeles, CA.
“When looking at a club there are some very obvious questions that should be looked at immediately. Does the club have a clear 5-10 year financial/operational and capital plan? This plan should include a replacement fund line for all existing outlets of the club, which should tie to dues,
and operations, beneath the operational line and the replacement line should fund capital projects.”
In Allnatt’s opinion, other influences affect a club’s operation mightily.
“Unfortunately, for many clubs with changing boards, committees and influencers these often get blurred. When entering a club do not always go through the front door and look at all the new ‘things.’ Walk into the back of house, forget about the new rooftop renovations with its amazing views, take a look at the carpet in locker rooms, the meeting rooms and the front lobby.
“Too many times, we sacrifice the upkeep of our facilities for a ‘flashy’ new project and that is where ‘TROUBLE’ starts. The slow deterioration of the back of house and the upkeep of the essentials are indicators of a path to ‘TROUBLE.’ When I hear people in clubs saying they have to assess the membership because of deferred ‘maintenance’ that tells me that leadership is living in the day-today and not the future,” Allnatt stressed.
Ray Cronin, principal with Club Benchmarking, says “the warning signs of a club in distress are obvious: Worn, outdated physical plant; declining membership numbers; board meetings focused on inconsequential issues like cover counts and F&B revenue; unhealthy club culture negatively impacting members and staff; weak club brand and value proposition putting downward pressure on dues and initiation fees.
“Unfortunately, those warning signs are all symptoms of a pervasive disease, which is boards and members-at-large misunderstanding the key success factors in the private club industry.
“There is one very simple, very comprehensive financial warning sign – net worth (member’s equity) over time,” emphasized Cronin. “Chart the club’s net worth since 2006 (prior to economic meltdown). Our research shows that 50 percent of the clubs in the industry are worth less today (inflation adjusted) than they were in 2006.
“This one measure captures the sum total of the club’s recent past and provides a key perspective on what needs to be done in the future, which is to increase net worth.”
An unstable governance process also contributes to a club in trouble and a lot of it is suggested in the negatives, added Gordon Welch, president of the Association of Private Clubs and Directors…”No cash, not providing amenities members want and expect, not providing a good member experience and management that is NOT seen around the club. And the list goes on:
• No leadership of the board and executive committee to carry out its governance functions
• No ensuring the board has approved policies to help deliver sound and compliant governance and management of the organization
• No collaboration between management and the board
• No measurable performance of the board and its committees
• No interest in serving on the board
• Lack of interest or lackluster board
• Poor communication between board, members and management
• A board that’s unable to delegate responsibility to management, thus micromanagement
• Indecisiveness
• No one to accept responsibility
• Uninspired and unmotivated management and staff (and membership)
• Departmental infighting, and
• Internal theft
Kurt Kuebler, principal with Kopplin Kuebler and Wallace, suggests several signs signal trouble for a club.
“First and foremost, for managers is seeing volunteer leaders getting actively involved in operations. If they do, there is likely a real or perceived void of communication and/or leadership by the general manager,” Kuebler maintained.
“Clearly in today’s club market, the vast majority of issues in clubs seem to start or are centered around consistency of service and delivery, often times in the food and beverage operation. Keeping actively in tune with that area and understanding members’ needs, wants and desires is critical. Surveying members much more frequently than most clubs have done in the past is critical,” Kuebler added.
“The lack of orientations for every constituency…staff, members, committee members and board members is another challenge. Educating each of those groups in advance clearly helps them to understand what they are getting into, the history of the club and what is expected of them. That just doesn’t happen as often, or as well as it
should, and the results are inconsistency and confusion.
“The lack of club culture (for both staff and members) and no cohesive vision to the future results in ‘issues du jour,’” added Kuebler.
So, until the club’s governance process is corrected, the decline will continue.
Golf as a major focus at many clubs brings its own set of issues. “Some private clubs facing difficulties have responded by not investing capital funds into the golf course and by foregoing preventative maintenance it’s counter-productive to the long-term viability of the club,” said Rhett Evans, CEO of the Golf Course Superintendents of America.
Tracking golf course numbers also gives hints of warning signs.
“The obvious tracking to the previous years’ numbers and monitoring the trends on these numbers of the total rounds of golf your members are playing, along with the dollars of merchandise sales per round members are spending are easy starters,” added the PGA’s Levy.
“Member tournament participation versus capacity can also be indicators of the members valuing their club. Did the member/guest and member/member tournaments sell out or is there a downward trend in participation? And at clubs that can or do allow outside play, a.k.a. non-member-sponsored play or activity – is the club becoming dependent on these revenues as compared to member revenues, and is the club staying under the IRS guidelines for allowable non-member income,” Levy queried.
One other major factor that comes into play for teetering clubs are the legal issues, and often these are signs of trouble ahead.
“Signs that alert me are clubs changing documents multiple times without legal review, poor operational controls, and a president who makes ad hoc exceptions for some members,” explained Robyn Stowell of Sherman & Howard, a Scottsdale, AZ legal firm.
“After the 2008 financial crisis, clubs began changing their refund programs, adding and changing membership categories, and otherwise trying to add a ‘flavor of the day’ offering to attract more members. Often, clubs have done this without thinking through the ramifications. For example, they might think about how they get the members into the club but not how they get them out (such as refunds) or whether they have limited rights (such as voting rights),” Stowell added.
“Another less common, but terrifying, issue that we see is clubs using severely outdated documents. Sometimes this occurs because the club was previously under developer control and simply moved forward with the developer’s documents.
“In other cases, the club historically had been much smaller and operated with great control vested in the com-
mittees. Often such documents are inconsistent with mandatory legal requirements. Regardless, we see this played out today with clubs not following best practices, creating great risk for the board members personally and for the club,” Stowell added.
“I am always concerned about poor operational controls. If a club doesn’t have a document retention program and hasn’t thought through asset protection (such as insurance, employee theft issues, etc.), then that club is just waiting to be in trouble.”
Cybersecurity increasingly is becoming another operational issue for private clubs.
“Some clubs still haven’t addressed this risk, even with the Target and Marriott hacking making front-page news and related to that is protection of personally identifiable information. All states have laws regarding the obligation to protect this information if you collect and retain it, and clubs need to get with the program quickly or they could face liabilities,” Stowell espoused.
“Finally, I see clubs in which the board president has been given authority to make exceptions for members. Sometimes they are mild accommodations but just as often they are wild, crazy, “who in the world thought that was a good idea” types of exceptions that should never be made by a board much less a single officer,” Stowell concluded.
SOLUTIONS – SHORT TERM AND LONG TERM
Paul Levy: The real answer here is having a well-researched strategic plan. The first three questions that you must be able to answer are:
1. Where are we and where do we want to go, or who do we want to be, and do our members have the resources and, more importantly, the commitment to support that plan.
2. Why is somebody going to join our club over the competition?
3. How are we going to deliver on the value proposition and are we the best value for the dollar in our market.
Clubs and the COO/CEOs must ask themselves, “Have we honestly and completely evaluated our operation? Have we researched the local market, before we develop a plan that fairly and comprehensively answers the three core questions? Also track the dues percentage of your revenue…it’s a big key performance indicator (KPI)
Last, make sure after all of the above you have a clear set of KPIs for your club and that the leadership, board or club’s owners have bought into them, and the staff understands how these are key to everyone’s future success. Make sure you have a system to accurately track your progress to these KPI’s.
Kurt Kuebler: Have metrics that are the guideposts to success. A strategic plan that doesn’t change when one new volunteer speaks against the one in place and have
greater organizational alignment with staff and volunteers. Have stronger leadership with both manager and volunteers at the top of the food chain in clubs. The thoughtfulness of who leads the organization should not be taken lightly…it’s a business and needs to be treated as one.
Ray Cronin: Short Term – Board members must make an open (minded) and concerted effort to realize the club business is not the same as their business and they must dig in and gain education on what the key to success is in private clubs. A tip… it isn’t focusing on costs and efficiency and last month’s results. It is focusing on the club’s mission, vision, value proposition and future plan.
A club’s board is a strategic body with a fiduciary duty to preserve, protect and grow the club’s assets and failure to attend to this critical responsibility puts the members, the staff and the club’s future at risk.
We take care of the software. Simple. Single Software Solutions for Clubs Big or Small
A cloud based club membership enterprise resource planning software program. ClubMTeCh is a management tool integrating all business operational systems under one comprehensive platform. ClubMTeCh solution enhances the membership portal to drive more revenue to the bottom line.
A single solution that includes:
• Accounting
• Invoice & Document Management
• Terminal & Tablet POS
• Website & Mobile
• Timekeeping
• Catering
• Tee & Court Sheet
• Shop Inventory
• Communications
• Tee, Court, Tournament, & Dining Reservations
Long Term – Clubs that are in trouble must develop a plan to generate more capital income and invest in updating assets and driving the value proposition forward to engage and attract today’s members joining clubs (Generation X).
Rhett Evans: Golfer satisfaction surveys from Golf Digest have shown time and time again that the primary driver of golf satisfaction is course conditions. If clubs forgo necessary course maintenance, then the product suffers, and club members will eventually find someplace else to play.
Clubs can help ensure their long-term success by engaging their golf course superintendent in developing master plans that can help the course run in an efficient and sustainable manner while providing playing conditions that will meet golfers’ expectations and retain their memberships. Reinvesting in the course is a must for any club’s continued success.
The days of a club just billing the members at the end of the year for any shortfall are over. As a result, realistic dues levels must be set. Clubs cannot get around the fact that they are in the dues business.
A long-range planning committee is essential. Not only to determine what is needed to improve the club but a realistic analysis of how the funds will be acquired to pay for them. This committee needs to specifically identify the wants versus the needs in such a plan.
Homeowners Associations are required to do a reserve study. Clubs should consider one as well. At the very least, it will give the club an idea of its future cash needs. Consider establishing a capital reserve fund. As we have stated many times in the past, a club is not a required expense.
If it becomes shabby, members question why they belong. If it is not relevant to them, why join. Unfortunately, it comes down to one item, All the expenses of the club are eventually the responsibility of the members.
Rick Coyne: Interestingly, in most clubs, the professional staff already know the danger signs as well as the
Leadership’s role is so much more in today’s club world, as our members want more from our facilities, but you cannot ignore culture. How do you welcome members and guests alike? Do your employees “See Something and Say Something”? Do they care? Do you preach service with a smile … is there a sense throughout the organization of a caring culture, goodness? When I walk into a club and am not greeted with a smile, not helped, paper on the floor, top button undone, I know, “There is trouble in the air!”
— Matt Allnatt, Jonathan Club
Gordon Welch: A good, strong leader for the board and committees…someone who will take responsibility and time to work with management to determine what role staff and board can play to improve quality and experience.
• Collaborative governance – a strong collaborative working relationship between the board of directors and the club’s general manager and staff
• Honesty and clarity while working collaboratively, and
• Roll up your sleeves and get back to the basics within the board and the club (staff).
Kevin Reilly: To get around the issues, the budgeting process must be strengthened. In addition to the normal budget, a cash budget needs to be established and reviewed regularly. Cash flow statements should be done monthly. The board must set realistic goals for the type of club it wants to be seen as. It is better to be a strong B club than a weak A wanna-be.
potential solutions. Frankly, their problem is often their boards wanting to hold on to the past.
There is nothing anyone can do to halt change. Ignoring reality and not adapting to an ever-changing consumer need for a relevant lifestyle experience however, can be the club’s largest contributor to failure.
Tradition and history aside, each generation, gender and family make-up and age group have differing needs with expectations of those needs being met before and after joining a club. Options abound, most without initiation fees and monthly dues.
Short term, the entire team must accept reality by embracing market and cultural changes, adapting as necessary to both the current members and potential new member needs. Ultimately, a specific club’s reality reveals itself by way of member surveys, focus groups and interaction with members of all ages, genders and family make-up. Market data and research on the demographics of your market are critical. If your market indicates a vi-
brant, young, family population and your existing membership is predominately over the age of 75, that’s a reality that can be fixed, assuming a willingness to change.
Gone are the days of back room decisions based upon gut reactions and bias. Today’s successful club relies on data, on research and on continuing education for their key departmental staff, openly embracing new and sustainable ideas and best practices.
The future has never been brighter for private clubs, if they can only get out of their own way.
Keith Jarrett, president, BoardRoom Distinguished Club: When a club’s member experience declines, enthusiasm declines, then usage, and then finally retention. Because of the cascading nature of this process, it’s critical to quickly spot any declines in member experience in any area of club, no matter how small.
But how does a manager monitor their club’s Member Experience at this level on a regular, if not daily basis? One solution is to deploy the innovative Survey-Polling system called ClubIQ ®, designed specifically for just this purpose.
Any good quality member survey can help garner insight into member satisfaction at any single time during the year, but ClubIQ ® goes much further. It not only extracts, distills and measures all components of the more important metric of member experience across all areas of the club, it does so on a daily basis throughout the entire year.
Accordingly, a general manager using ClubIQ® is able to easily spot any declines in any aspect of member experience across any area of the club and then take appropriate action to nip the cause(s) in the bud – long before such declines begin to cascade into member departures.
Matt Allnatt: When we hire at the Jonathan, we look for two things, appearance and attitude. Does the person we are hiring present themselves in a fashion that shows respect, care and pride. If this is the case, then with the right attitude our team can make that person a success. Why do I say this? Well, often I will go to an establishment and immediately know they are in trouble.
It starts with the welcome, the attire, do they care? Leadership’s role is so much more in today’s club world, as our members want more from our facilities, but you cannot ignore culture.
How do you welcome members and guests alike? Do your employees “See Something and Say Something”? Do they care? Do you preach service with a smile? As I mentioned earlier, it is the back of house that bleeds to the front … is there a sense throughout the organization of a caring culture, goodness? If you focus on this, it will come through to the front of house. When I walk into a club and am not
greeted with a smile, not helped, paper on the floor, top button undone, I know, “There is trouble in the air!”
Finally, I would say that all of the above can be achieved through consistent leadership.
• Tell your boards the most successful clubs have long-term managers.
• Boards work with a clear strategic plan. Goals are clearly defined, responsibilities are defined.
Your job, should you wish to undertake it, is to ensure everyone from the president to your dishwasher knows who you are, what you believe in, that you care and respect the culture, the members and staff. Never step away or lose focus, you must preach and illustrate every day.
We deal with human beings so there will always be opportunities (issues) but you must not stop or lose focus, because without the consistent leadership your club will just bounce from one way to the other.
PUBLISHER’S FINAL THOUGHTS
There’s a reason why I’ve chosen this topic. We have visited hundreds of clubs over the past few years and what was startling is the fact that many of the top clubs don’t have a waiting list to join. Actually, many have 20 to 40 memberships for sale. Some clubs even have treasury memberships…memberships that members have walked away from because they gave up waiting for their membership to be sold. So, they stopped paying dues and walked away.
What’s also startling to me is the fact we are in the best economy in 50 years…no recession for 10 years, very little inflation and a stock market that is up over 200 percent since 2008. What’s going on?
Here’s what we’ve noticed. Labor rates are increasing every year, water costs are going up, electricity rates are increasing by double digits, food prices are sky rocketing and lawsuit costs increasing. Fact is, club operating costs have risen… at the low-end three percent to as much as seven percent per year.
Many clubs have not adjusted to these skyrocketing expenses and are creating a five and 10-year strategic plan to deal with these issues. Why and how do you deal with them? For example, does your club have a solution to decrease water and electricity costs?
What about labor? Have you truly looked at creating efficiencies on the golf course? Previously as a golf course owner, I was able to reduce my golf course staff labor costs simple by changing the hours they cut grass.
Is your board and staff trained to effectively and efficiently operate your club?
It’s as Ray Cronin of Club Benchmarking has said, “Our research shows 50 percent of the clubs in the industry are worth less today (inflation adjusted) than they were in 2006. This one measure captures the sum total of the club’s recent past and provides a key perspective on what needs to be done in the future, which is to increase net worth.”
Questions…questions, but the fact is many of the clubs we have visited face these kinds of challenges for the following reasons.
1) A board hasn’t been trained to understand the dynamics of a non-profit equity club.
2) Board members that continue to micromanage their staff.
3) Board members make decisions on emotion and personal agendas and not based on facts, including comparisons to other clubs.
4) General managers and nominating committees don’t take an interest in recruiting the best members to be on the club’s board.
5) There’s very little collaborative action and decision-making between GM and board
THE BOARDROOM INSTITUTE
Efficient and effective on-line education for your club’s board of directors.
View Boardroom Institute – boardroominstitute.net.
A 100% money back guarantee that we will prepare your board and management to deal with many club issues.
The industry top experts present up-to-date information and education for your board member.
To register call Gordon Welch at (918) 914-9050.
6) There’s no strategic plan to deal with a club’s runaway inflation.
7) Board and GM do not understand nor recognize the changing demographics of the industry and community.
8) There’s lack of a concise and precise plan to deal with increasing usage and retention.
9) Management lacks the knowledge and ability to read financial statements.
10) There are no facilities that interest new members.
11) The lack of a strategic plan to deal with these issues and many of the club’s plans. These issues potentially are setting up your club for unnecessary pain and, in the process, setting up your management to fail.
The fact is board members need to gain the education, learn what their roles and responsibilities are and understand that board education is the key to success in private clubs. It’s all about a club’s member experience and the board’s fiduciary duty to preserve, protect and grow the club’s value.
At least, that’s the way I see it. BR
John G. Fornaro, publisher
Benefits
Education for Maximizing both Member Event Experience and Private Event Revenues and Experience • Webinars • Coaching and Resources Monthly Educational Newsletters • Networking Events Club Catering Professional Certification Program
The First and the Only Association specifically for the education and advancement of Club Catering and Event Professionals in the Private Club Industry to elevate the Member Experience Save the Date! ACCP 2019 National Conference August 25-27, 2019 The Broadmoor Resort, Colorado
“I came back completely renewed and motivated! I can’t wait to implement all of the ideas” -Tricia Cummings, Blue Hill Country Club
“This conference was one of the most incredible experiences I have ever had! I cannot wait until next year!! -Olivia Pollock, Great Oaks Country Club
“This conference really gave me a fire in my belly to come back to my club and do more...I want to share that inspiration with my team and hope that we can take our club to the next level!” -Amanda McCleery, Ballantyne Country Club
Educating the Club Industry. . . One Catering Director at a Time www.TheACCP.com
Contact: Lynne LaFond DeLuca Lynne@TheACCP.com
Oakland Hills Country Club
BOARDROOM
Chris Boettcher, CCM, CCE, GM/COO, The Beach Club of Santa Monica, CA
David D Cecil, CCM, CCE, COO / GM of Siwanoy Country Club, Bronxville, NY
Todd Dufek, locker room manager, The Country Club at DC Ranch, Scottsdale, AZ
Christa Farr Evans, CCM, CCE, Vestavia Country Club, Birmingham, Alabama
Lee Hoke, past president of Buckhorn Springs Golf and Country Club, Tampa, FL
Dr Bonnie Knutson, the Country Club of Lansing and the Michigan Athletic Club
Nancy Levenburg, member, Spring Lake Country Club, Spring Lake, MI
Dave Moyer, director of tennis, The Country Club at DC Ranch, Scottsdale, AZ
MacDonald Niven, MA, MCM, CCE, CEO of Lakewood Country Club, Rockville, MD
Michael Nyerges, clubhouse manager, Fiddler’s Elbow, Bedminster, NJ
Gregg Patterson, president, Tribal Magic, member, The Beach Club of Santa Monica, CA
Ashley Payne, communications director, Country Club of Virginia, Richmond, VA
Michael Scimo, president, Medinah Country Club, Medinah, Ill
Robert A Sereci, CCM, GM/COO, Medinah Country Club, Medinah, IL
